Lula hardens his rhetoric and considers action against online gambling.
President Luiz Inácio Lula da Silva (PT) is preparing a "drastic measure" against online gambling before the October elections, in a move that seeks to capitalize on the support of 70% of Brazilians who favor a ban on betting, according to polls cited by the government. The final decision, however, has not yet been made.
According to reporting by Estadão, the Presidential Palace is evaluating different courses of action before the election, with a Provisional Measure (MP) appearing as the most viable alternative among government leaders in Congress, due to its immediate effect and its validity during the election month. One faction within the government is even advocating for a total ban on online gambling.
On Tuesday (September 1st), Lula met with civil society organizations to discuss the issue and reiterated his willingness to act firmly. "I think we have to take a more drastic decision. Because we don't even have demand-pull inflation," the president stated. On the same day, Lula's campaign published a text on social media positioning the government as responsible for confronting the sector: "Since we took office, we have decided to address this problem responsibly. We have regulated the sector, expanded oversight, taken down tens of thousands of illegal websites, created self-exclusion measures, and strengthened prevention and care through the SUS (Brazilian public health system) for those who have lost control over gambling."
On August 26, a private meeting between Lula and ministers at the Alvorada Palace had already addressed the issue.
Obstacles to action
The ban faces resistance on several fronts. The so-called "betting lobby" in Congress and legislative inertia are cited as the main obstacles to a legislative measure. Sources close to the president also warn of the risk of a provisional measure expiring after its validity period, losing its effect before any consolidation of the measure.
The alternative of banning betting advertising was also considered, but it faces a significant obstacle: approximately 62% of Brazilian football funding comes from online betting. Adopting this restriction now would mean, according to government sources, abruptly halting the Brazilian Championship.
Submitting a bill under urgent procedure would be another possible path, but Congress will cease its functions next week, less than a month before the elections, making this timeframe practically unfeasible.
A faction within the Presidential Palace is also considering taking the issue to the Supreme Federal Court (STF) for the Court to rule on the prohibition. However, this path is on hold due to the crisis involving Minister Alexandre de Moraes, following the revelation of text message exchanges between him and Daniel Vorcaro, owner of Banco Master, shortly before the executive's arrest.
Industry history
Online betting arrived in Brazil after then-President Michel Temer (MDB) signed a law on the subject in 2018. The government of Jair Bolsonaro (PL) did not advance in regulating the sector. It was Lula who signed the new law in 2023, after approval in Congress, and his administration developed all the regulations and taxation of betting.
The government also has studies indicating that online gambling is the main cause of household debt in the country [ BNLData disputes this claim with several plausible arguments ]. Throughout this year, Lula had been hardening his stance on the issue even before the formal start of the campaign. "It wasn't our government that allowed gambling to enter Brazil, but it is our government that will put a limit on the destruction it has been causing," the president said in a statement on May 1st.
In Congress, there is a bill under consideration that imposes restrictions on betting advertising. The proposal was presented in the Senate in May and was approved this Wednesday (2) in the House's Science and Technology Committee, under the rapporteurship of Senator Alessandro Vieira (MDB-SE).
