Brazilian President Luiz Inácio Lula da Silva has intensified his criticism of the betting sector and said that, if it were up to him, online betting should be brought to an end.
In recent months, Lula has increasingly linked betting to social problems, including household debt, while raising concerns about its impact on young people and low-income workers. He has also described betting platforms as a “scourge of lies” and said the government is considering further measures with the ministries of finance, planning and justice.
A potential ban faces political and economic risks
Lula has acknowledged that a full ban would be difficult to implement. He has pointed to a betting lobby in Congress that he says is defending the industry’s interests.
The government would also have to consider the financial impact of such a move. Betting and online gaming generated almost BRL7.3 billion in government revenue during the first half of 2026. In 2025, the sector contributed around BRL10 billion, excluding certain concession and regulatory fees.
The size of the betting audience is another factor. According to Brazil’s Finance Ministry, more than 5 million people are already restricted from betting through licensed operators.
Industry warns of illegal-market growth
Betting industry representatives argue that a complete ban could fail to reduce gambling activity and instead push more users towards unlicensed operators.
A study by LCA Consultores and Instituto Locomotiva estimated that illegal platforms accounted for around 38–44% of online betting in Brazil during the first half of 2026. The figure is below the previous estimate of 41–51%, but the illegal segment still represents a significant share of the market.
Industry representatives warn that removing licensed operators could push users towards platforms operating outside government oversight.
Brazil’s government therefore faces a difficult balance between concerns over gambling-related harm, tax revenue and the risk of further growth in the illegal market. The future of the country’s regulated betting sector remains uncertain.
