Brazil’s President Lula Is Preparing Stronger Restrictions on Gambling

The government of Brazilian President Luiz Inácio Lula da Silva is reportedly preparing a Provisional Measure that could introduce new restrictions on betting operators and potentially ban certain segments of the industry. The news comes just before the upcoming presidential elections in October. President Lula Wants to Restrict Gambling According to CNN Brazil, the government is weighing tighter restrictions on betting advertising, including a potential ban on online casino games. Led by the Chief of Staff’s Office, the proposal aims to introduce market restrictions with immediate effect, circumventing the lengthy legislative process required for a bill to pass through the National Congress. The government is considering imposing severe sanctions, including the possibility of a complete ban on specific categories, such as online casinos and certain features offered by sports betting platforms. The push to revise the proposal and submit it to lawmakers next week is also driven by political considerations. Internal polling by the Workers’ Party indicates that three in four Brazilians oppose the practices of gambling platforms. Opposition is even stronger among young people and women, which are key demographics for President Lula’s re-election campaign. With less than 30 days remaining before the elections, capturing these demographics may be key for Lula. Internal polling by the Workers’ Party, cited by journalist Lauro Jardim in his Sunday column for O Globo, reportedly shows that Lula’s approval rating has fallen to its lowest level in the past year. However, Lula’s strategy to gain support by imposing heavy restrictions on gambling is not entirely baseless. According to a recent study, more than two million Brazilians are suffering from clinical gambling addiction, while another seven and a half million are classified as problem gamblers. While some presidential advisers are evaluating the potential impact of tighter restrictions, another faction within the government is advocating for a more limited approach. The Ministry of Finance, which has overseen the sector’s regulation in recent years, is pushing back against stricter measures. Finance Minister Dario Durigan faces the challenge of persuading Lula that maintaining a well-regulated betting industry is important for Brazil’s public finances, as in 2025, the country collected nearly BRL 10 billion ($1.97 billion) in tax revenue from the licensed betting sector. What Did Lula Say? According to CNN Brazil, President Lula said he would personally favor ending betting, arguing that it is harmful to society. However, he acknowledged that, as president, he must consider broader political, economic, and social stability and consult with others before taking action. Lula also stressed that the government needed to act, whether by adopting drastic measures or pursuing a more limited approach. He explained that he had called the meeting to hear from representatives of society and noted that the decision was already largely formed, with the meeting intended to help finalize and formalize the government’s course of action. Despite Lula’s goals of imposing heavy restrictions on gambling in the country, many companies still remain adamant in their pursuit to capture the large player base that is Brazil. For example, recently Playtech teased a launch in Brazil for next year after announcing strong growth in the first half of 2026.