Key facts
- Brazil's President Luiz Inácio Lula da Silva signed a provisional order banning all sports betting and online casinos.
- The ban comes less than two weeks before the first round of Brazil's presidential election.
- The online gambling industry in Brazil was legalized in 2018 and has been blamed for household income losses due to addiction.
- President Lula described the industry as a "cancer" and stated that betting companies should not profit at the expense of Brazilian families' income and lives.
- Flávio Bolsonaro called the gambling crackdown "populist, hypocritical and politically motivated."
- The new measures require congressional approval within 120 days to remain in force.
Brazilian President Luiz Inácio Lula da Silva has banned online gambling operations via a provisional order, effective immediately, pending congressional approval. The move comes less than two weeks before the presidential election, as Lula seeks to address voter concerns over household finances and rising debt burdens.
President Lula described the industry as a "cancer" and stated that betting companies should not profit at the expense of Brazilian families' income and lives. The online gambling industry in Brazil was legalized in 2018 and has been blamed for household income losses due to addiction, with an estimated 38.8 billion reais ($7.8 billion) annual cost to Brazilian society. Brazilians reportedly spend an estimated 30 billion reais ($6.1 billion) monthly on bets, generating an estimated $4 billion in annual revenue for sports betting companies.
However, Lula's main rival, Senator Flávio Bolsonaro, called the gambling crackdown "populist, hypocritical and politically motivated." The new measures require congressional approval within 120 days to remain in force. Polls suggest the economy is a key factor in the neck-and-neck race between Lula and Senator Bolsonaro, with nearly half of Brazilians saying the economy has worsened in the past year.
Experts note a disconnect between improving macroeconomic data and negative consumer sentiment, a phenomenon dubbed the "vibecession." While inflation has slowed, years of steep price increases and high interest rates continue to strain household budgets. Lula's campaign has launched a website to dispute claims about prices and filed a complaint accusing Senator Bolsonaro's campaign of lying about them.