Brazil’s President Luiz Inacio Lula da Silva announced a ban on online sports betting operations Friday.
Key Takeaways
- Brazil President Luiz Inacio Lula da Silva bans sports betting nationwide.
- Lula’s ban comes just days before first-round vote on Oct. 4.
- Brazil notes a “public health issue” involving online gambling.
While sports betting is booming across the United States, Latin America’s largest economy is closing up shop, at least for now. Brazilian households were estimated to spend around 60 billion reais ($11.57 billion USD) annually on online betting, which generated around 10 billion reais in tax revenue, according to Reuters.
Brazil was one of the newcomers to the online sports betting space, legalizing it starting in 2025, although it was more of an open market since 2018. As of 2025, bettors had to clear several hurdles to place wagers, including providing Individual Taxpayer Registration (CPF) information and agreeing to facial recognition.
Brazil’s president, who is better known by Lula, has been against sports betting and signed Bill PL3636/23 to help regulate online gambling starting on Jan. 1, 2025. Now, Lula has reversed course ahead of an important election next month.
The current president has competition from a familiar family in Brazilian politics: right-wing Senator Flavio Bolsonaro, the eldest son of former president Jair Bolsonaro.
The Senator said the ban is “populist, hypocritical, and politically motivated” at a rally Friday in Rio de Janeiro.
On the other hand, Lula has long been worried about the long-term effects of online betting for his country.
“We are facing a public health issue involving online betting,” Finance Minister Dario Durigan said in the announcement. “It is a serious problem.”
Lula is “deeply worried about the indebtedness of the Brazilian people,” as he stated earlier this year. “If these platforms cause harm, why don’t we end them? We are discussing this very seriously.”
The President also said back in April that if it were up to him, they would close the sports betting operations in Brazil.
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Ban takes immediate effect
Lula came through on that with the ban on Friday, which Congress has to approve within 120 days to remain in effect. It did take effect immediately, though, and users will have until Oct. 5 to claim remaining funds in their accounts. App stores and network providers are required to block sports betting websites the following day.
Brazil’s election will be held on Oct. 4 to elect the president, vice president, and other members of the government. There are plans for a runoff election on Oct. 25 if none of the candidates receive a majority of the votes in the first round, which seems like a distinct possibility given the tight race.
