The President of Brazil, Luiz Lula, has banned all activities on sports betting platforms just says before the nearing presidential election in the country.
Lula stated that engaging in sport betting stating that it has caused strong voter opposition and also dragged many into debt causing a gridlock in normal living conditions to many citizens in the country.
The president, who is seeking a fourth term spell at his position, mentioned that gambling has exploded in the South American country in recent years, adding that it is currently not possible to deposit money into betting sites in the country.
Finance Minister Dario Durigan, stressed on the development alongside Lula on Saturday, stating that new advertising contracts for betting companies have also been banned, adding that 85 licenses granted for betting, each valued at 30 million reais ($5.7 million), will not be refunded.
Durigan informed that the government had attempted to regulate the industry, but it had become a public health issue, with more than 60 billion reais ($11 billion) flowing from families to legal betting companies
“I spoke with a young guy who tried to kill himself three times over his gambling addiction,” said Lula after signing a provisional measure enforcing the ban
“I decided to take a necessary, tough, and drastic measure. It’s like cancer. It’s either we remove the tumour, or it kills us”
The directive which requires an approval by Congress to become law has since generated mixed reactions from the public, with Powerhouse football club, Flamengo, calling it a heavy blow to Brazilian sports.
Flamengo warned that it could impact not only professional football, but youth academies, women’s soccer, Olympic sports and various championships.
Several soccer clubs have expressed opposition to the ban, arguing that betting sponsors are vital to their financial health, 13 of them having an online betting site as their main shirt sponsor.
The National Association of Games and Lotteries, NAGL, which represents licensed betting operators, joined eight other industry groups in warning that prohibition could drive gamblers toward illegal platforms.
Lula, in his response, said called the arguments nonsense and called for an end to the the act.
The initiative is the latest in a flurry of moves made by Lula before a first round of voting on October 4, as he stands neck-and-neck with right-wing Senator Flavio Bolsonaro in the polls
Brazil’s betting market has boomed since a regulatory framework was established in 2023, accompanied by aggressive advertising both on the streets and online from influencers and sports stars, also highlighting a loss in tax revenue and jobs.
In 2025, the sector paid 9.95 billion reais ($1.73 billion) in taxes to the federal government.