Are we nearing the end of legal Brazilian betting? President Lula reveals his drastic measure

Brazilian betting firms are bracing for impact as reports swirl that President Lula da Silva is planning a move against the industry, targeting a full ban on casino activity and extensive restrictions on betting, as reported by SBC Noticias Brasil. Credible media sources cited in Brazil suggest that President Lula is going to make good on his ambitions to clamp down on online gambling in the country. Despite having greenlit the regulated market in December 2025, President Lula has quickly turned against it. According to local media, Lula is is planning two key measures targeting online gaming: A complete ban on online casino activity The creation of an electoral programme where he will meet with Brazilians affected by problem gambling, coming ahead of the October elections. It is understood that a ban on sports betting has also been considered, but Lula and his policymakers have ultimately decided not to include it – likely opting to continue gaining some tax returns from Brazilians’ gaming activity. Further advertising restrictions on sports betting are highly likely, however. As with many newly launched markets, Brazil has seen a huge increase in betting advertising on television, particularly during sports broadcasts, raising concerns about social impacts. Lula vs the Ministry of Finance vs the betting sector The regulation of Brazilian gambling under 2025’s Law No. 14,790 has taken more twists and turns over the past two years. Although he gave his approval to the law, Lula was never a particularly big fan of the industry and has become increasingly critical of it. His government has since approved increases in tax, with the rate on gross gaming revenue (GGR) set to increase from 12T to 18% by 2028. With elections in October, betting has found itself at the centre of political debate, perhaps explaining Lula’s electoral programme. Lula’s main opponent in the race is Liberal Party leader Flávio Bolsonaro, son of former President and Lula’s predecessor Jair Bolsonaro. He has also been mulling over whether to include an online gambling ban. The President’s increasingly hostile approach to the sector is also putting him somewhat at odds with other elements of his own government. While politicians in Brazil would like to see betting activity curbed, they fall short of an outright ban. Dario Durigan, Finance Minister since March 2026, outlined his own preference for tighter restrictions on online gambling, but not an outright ban on the practice – likely taking note of the around R$7.3bn (£1bn) in taxes the state gained from regulated betting in H1 2026. The Ministry of Finance’s Secretariat of Prizes and Bets (SPA), the regulator of online Brazilian betting, meanwhile, has been stepping up its campaigns against illegal gambling over the past year. The regulator’s latest move saw it establish procedures to illegal gambling transactions. Can Brazilian betting firms hit back? The reports around the President’s intentions come after he hosted a meeting discussing online betting’s impact in Brazil with representatives from civil society, as well as business, religious, health, and consumer advocacy groups. Absent from the meeting were representatives from the SPA and from any of its three main trade bodies. The meeting concluded with Lula stating that a “drastic” measure around online gambling was in the works. Brazilian betting firms are finding themselves on the ropes politically, and trade bodies are responding accordingly. The National Association of Games and Lotteries (ANJL) has warned about the risks of illegal gambling, a familiar argument to many. “Instead of reducing the problem, it may transfer it to an environment in which the state has less capacity to monitor, prevent indebtedness, and protect the citizen,” an ANJL statement read. The Brazilian Association for Compliance, Best Practices, Ethics and Transparency in Betting (ABC-BET), meanwhile, has urged the government “don’t weaken regulation. Strengthen it”. The Brazilian Institute for Responsible Gambling (IBJR) has not issued a statement in response to the reports yet. However, it is likely that the trade body will also make arguments around illegal gambling, having recently cited data that 48% of bettors in the North Region of the country gamble illegally. Brazilian betting trade bodies have a big fight on their hands looming, particularly as politicians look to seize the headlines ahead of the general elections on 4 October. Restrictions are undoubtedly in the pipeline, but at the more extreme end Lula and others are eyeing up what local reports have called “almost an extinction of online gambling in the country”.