Brazil Bans Online Betting Ahead of Presidential Election

Brazil's President Luiz Inácio Lula da Silva has signed an executive order banning the operation, offering, intermediation, and advertising of fixed-odds betting. The move, enacted immediately on Friday, comes just over a week before the first round of the presidential election.

The provisional order requires congressional approval within 120 days to remain in effect. It prohibits new deposits into betting accounts and gives users until October 5 to withdraw their funds. The government has also drafted a bill to criminalize actions such as promoting fixed-odds betting and using personal data to solicit bettors.

Lula described the ban as a "hard, drastic and necessary measure," comparing the problem of online betting to a "cancer." He had previously criticized the online betting industry at the United Nations General Assembly, stating that it "transform[s] addiction into profit" and "destroy[s] homes."

Recent polls suggest the ban has widespread support among Brazilians. However, Senator Flávio Bolsonaro, the main rival to Lula in the upcoming election, characterized the ban as an "electoral measure."

This is not the first time Lula has targeted online betting. He called for a ban as early as April, and the issue gained prominence during the FIFA World Cup due to the ubiquity of betting advertisements and a surge in users. A 2025 study by the nonprofit Institute of Studies for Health Policies estimated that betting and gambling cost Brazilian society approximately 38.8 billion reais ($7 billion) annually, contributing to increased rates of suicide and depression. The country's central bank estimated last year that Brazilians spend about 30 billion reais ($5.7 billion) on bets monthly, a figure that included spending by beneficiaries of the federal welfare program Bolsa Familia.

The ban faces political opposition. In October of the previous year, lawmakers, including many from Flávio Bolsonaro's Liberal Party, rejected a Lula-backed order to increase taxes on online betting and virtual casinos.

Gambling is illegal in Brazil, but the country began allowing online betting in 2018 during the presidency of Michel Temer. The sector expanded significantly under former President Jair Bolsonaro, Flávio Bolsonaro's father. In December 2023, Lula signed a law to regulate and tax betting companies for the first time. Subsequently, his administration blocked over 2,000 online betting websites deemed irregular, some of which were linked to criminal organizations.

Business analysts estimate that revenues from sports betting alone exceed $4 billion annually in Brazil, making it one of the world's largest markets for this sector. Brazil's major soccer clubs have expressed concern that sponsorships from betting companies may be immediately terminated if the ban is fully implemented, potentially impacting the financial stability of the sport.