Brazil’s Lula bans online betting operations as reelection race tightens

By Igor Sodre and Marcela Ayres

SAO PAULO, Sept 25 (Reuters) – Brazil’s President Luiz Inacio Lula da Silva on Friday announced a ban on online betting operations in Latin America’s largest economy, the latest in a series of measures unveiled ahead of next month’s election.

Opinion polls have shown Lula locked in a tight race with right-wing Senator Flavio Bolsonaro, eldest son of former President Jair Bolsonaro, ahead of the October 4 first-round vote. 

The executive order bans online betting operations in Brazil, less than two years after the government kicked off a legal framework allowing the industry to operate. It takes immediate effect but must be approved by Congress within 120 days to remain in force.

The crackdown reflects growing concern within the government that rising spending on gambling has drained household budgets and contributed to record levels of indebtedness. Recent surveys showed roughly three-quarters of Brazilians support a complete ban on online betting. 

“We are facing a public health issue involving online betting. It is a serious problem,” said Finance Minister Dario Durigan during the announcement.

Durigan said that betting firms’ websites will remain available for users to claim remaining funds until October 5. App stores and network providers will be required to block these websites on October 6, he added.

Senator Bolsonaro called the measure “populist, hypocritical and politically motivated” during a campaign rally in Rio de Janeiro on Friday.    

Online betting was legalized in Brazil in 2018 under former President Michel Temer but remained largely unregulated throughout Jair Bolsonaro’s administration. Lula signed legislation in 2023 establishing rules and explicitly authorizing online casino games in addition to sports betting.

Licensed operators have been allowed to offer services nationwide since January 2025 after paying concession fees and meeting regulatory requirements.

Officials have argued that betting losses have fueled public dissatisfaction with the economy, despite record-low unemployment and relatively subdued inflation in the country.

The Finance Ministry estimates Brazilian households spend around 60 billion reais ($11.57 billion) annually on online betting, generating roughly 10 billion reais in tax revenue.

($1 = 5.1856 reais)

(Reporting by Igor Sodre and Marcela Ayres; Editing by Fernando Cardoso, Iñigo Alexander and David Gregorio)