São Paulo.– The government of Brazilian President Luiz Inácio Lula da Silva announced this Friday the ban on sports betting and online casinos in the country, nine days before the presidential and legislative elections scheduled for October 4.
During an event held in São Paulo, Lula presented the measure accompanied by several of his ministers and announced a veto on so-called “bets,” which will cover various types of digital betting and advertising related to these companies.
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The Government also plans to send to Congress, through an urgent procedure, a bill to incorporate the activity into the Penal Code and strengthen measures against illegal gambling, as explained by the Minister of Finance, Dario Durigan.
The decree will come into effect once it is published in the Official Gazette. However, Parliament must ratify it within a maximum period of 120 days for the measure to remain valid.
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Lula also announced the expansion of a debt renegotiation program for families, with the purpose of including older loans and expanding alternatives for access to credit.
The Brazilian president has pointed out in recent months the economic and social effects that, according to his Government, are related to the growth of digital betting. In statements cited during the announcement, Lula has questioned the impact of the platforms on family debt.
The decision comes after a regulatory process that began with the legalization of sports betting in 2018 and subsequently incorporated online gaming. Currently, the Secretariat of Prizes and Betting of the Ministry of Finance maintains a system for the authorization, supervision, and monitoring of platforms that operate legally.
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The market has also received additional restrictions during this year. Among them is the blocking of access to authorized platforms for beneficiaries of certain social programs and people who are in specific debt renegotiation processes.
In addition, more than one million Brazilians had voluntarily requested their self-exclusion from authorized platforms by mid-September, using a tool developed by the Government to limit access to betting.
In parallel, Brazilian authorities have intensified actions against platforms operating outside of regulation. The Ministry of Justice reported this week on the removal of more than 1,300 pages and profiles used to promote irregular betting sites on social media.
Lula: Economic and sports impact
The ban announced by Lula will also have repercussions on sectors that have benefited from the growth of digital betting, particularly football clubs and the media.
Companies in the sector have become major sponsors of Brazilian Championship teams. Faced with reports of a possible ban, several clubs, including Palmeiras and Flamengo, publicly expressed their concern about the economic impact that the loss of this revenue would have.
The debate also involves the tax revenue generated by legal betting and the resources allocated to different economic activities.
At the same time, Brazilian authorities have argued that strengthening controls seeks to reduce the risks associated with the problematic use of platforms and protect sectors considered vulnerable.
The Ministry of Health also maintains a national campaign to inform about the risks related to online betting and the services available in the public health system for those who present problems linked to gambling.
Lula defended the measure as part of his government’s actions in response to the growth of digital betting, while the process must now continue in the Brazilian Congress.
The decision comes in a highly competitive electoral scenario. A Datafolha poll released this week placed Lula with 40% of voting intentions for the first round, compared to 36% for Senator Flávio Bolsonaro, a difference that falls within the survey’s margin of error.
With the entry into force of the decree and its subsequent parliamentary process, Brazil begins a new stage in the regulation of digital betting, while the Government must define how the ban will be applied and how potential illegal market activities will be addressed.
