Brazilian President Luiz Inácio Lula da Silva has announced a major crackdown on online gambling, introducing measures to prohibit sports betting and online casino games just days before the country heads to the polls.
Lula signed a provisional order on Friday targeting Brazil’s rapidly expanding online gambling sector. The move comes as the 80-year-old president campaigns for a fourth term and faces Flávio Bolsonaro, the son of former President Jair Bolsonaro, in a closely watched presidential race.
Under Brazil’s existing system, online betting was legalized in 2018. Since then, the industry has expanded dramatically, while concerns have grown over gambling addiction, household debt and the financial impact on vulnerable families.
Lula has strongly criticized the sector, describing online gambling as a serious social problem. In announcing the new measures, he compared the industry to a “cancer” and argued that action was necessary before gambling addiction causes further harm to Brazilian households.
The president said he had heard accounts from families who had lost significant amounts of money through gambling, including people who had reportedly sold possessions to continue betting. He also argued that children and teenagers had not been adequately protected from online betting platforms.
“We won't allow betting companies to profit at the expense of Brazilian families' income and lives,” Lula said in a statement shared on social media.
The president also acknowledged that online betting was initially authorized during the administration of former President Michel Temer. However, he argued that the sector expanded without sufficient controls during Jair Bolsonaro’s presidency.
The provisional order would prohibit sports betting and online casino activities. However, the measures are not automatically permanent. Brazil’s Congress must approve the order within 120 days for it to remain in force.
Alongside the gambling restrictions, Lula signed a separate bill aimed at strengthening penalties for criminal activities connected with fixed-odds betting. The measures reflect his broader effort to increase government oversight of an industry that has become increasingly popular across Brazil.
The issue has also featured in Lula’s international remarks. During the United Nations General Assembly earlier this week, the president criticized betting companies for turning gambling addiction into a source of profit.
However, the government’s decision has faced criticism from Lula’s political opponents. Flávio Bolsonaro described the crackdown as “populist, hypocritical and politically motivated” during a campaign event in Rio de Janeiro, according to Reuters.
The timing of the announcement has added political significance. Brazil is heading into the first round of its presidential election, with recent polling indicating a close contest between Lula and Flávio Bolsonaro.
Gambling has long been a controversial issue in Brazil. Many traditional forms of gambling, including casinos and slot machines, remain illegal. The legalization of online betting in 2018 nevertheless created a rapidly growing digital gambling market.
The expansion has prompted increasing concern among policymakers and the public about addiction and its effects on personal finances. A survey by Atlas and Bloomberg published this week found that approximately 59.9% of Brazilian adults supported banning internet betting.
Lula’s latest action therefore comes at the intersection of public policy, consumer protection and election politics. Supporters of tighter regulation point to concerns about gambling addiction and financial losses, while opponents question the government's motives and the timing of the restrictions.
For the provisional order to become a lasting part of Brazil’s gambling policy, however, it will need to pass through Congress. Its future could therefore depend not only on public reaction but also on political negotiations following the election.
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