Brazil's Lula Targets Online Betting Ahead of Tight Election

Brazil's government has implemented an order banning the operation, offering, intermediation, and advertising of fixed-odds betting platforms, a move enacted nine days before the first round of presidential elections. President Luiz Inácio Lula da Silva signed the order, which aims to end the sector's operations but requires congressional approval within 120 days to remain in effect and faces potential judicial challenges.

The ban has created significant disruption in Brazil's online betting market, which is one of the largest globally. An institute representing most platforms operating in the South American nation reported revenues exceeding $4 billion in 2025. The country's central bank estimates monthly spending on bets to be around 30 billion reais ($5.7 billion), a figure that includes spending by beneficiaries of the federal welfare program Bolsa Familia.

Leandro Valdivia, a 38-year-old healthcare professional in recovery from gambling addiction, expressed anxiety over the ban potentially being overturned. Valdivia, who lost approximately $26,000 and his small media company due to his gambling, supports the prohibition, stating, "This is an addiction that doesn't give you bad breath... Nobody finds it strange if you stay on your phone all day." He still has debts of 30,000 Brazilian reais ($5,700) and hopes the ban's impact on the economy and mental health will be lasting.

Political analyst Creomar de Souza noted that Lula strategically timed the announcement, as polls indicate over 70% of Brazilians favor banning betting platforms. De Souza suggested that the ban does not harm Lula politically, regardless of whether Congress upholds it. He pointed out that Lula himself previously pushed for the regulation of betting companies only two years ago, and if Congress rejects the order, Lula could leverage it to position himself as an anti-system candidate.

Despite widespread public concern over the detrimental effects of online betting on the economy and mental health, betting companies are preparing legal challenges. Experts anticipate that the order may be struck down due to procedural issues, such as the abruptness of the ban and the government's failure to address licensing fees paid by platforms or the impact on workers.

Matheus Puppe, an expert in Brazilian digital law, expects the ban to be challenged in court, though he believes it is unlikely to be overturned before the upcoming election. He argued that banning legal platforms could inadvertently drive users to illegal ones and highlighted the lack of a transition period and consideration for affected businesses and employees.

All 20 clubs in Brazil's Serie A are sponsored by sports betting platforms, and a government staffer, speaking anonymously, indicated that Lula had initially considered a partial ban. However, top division soccer clubs issued a joint statement warning that removing these platforms would mean the end of "futebol," Brazil's most popular sport. The staffer confirmed Lula changed course after this. The government has already removed 506 websites accused of continuing to offer the service.