Brazil’s regulated betting industry is facing uncertainty after President Luiz Inácio Lula da Silva said he had a “personal disposition” to eliminate gambling and compared betting addiction to crack cocaine during the Desce a Letra Show podcast on September 16.
“Do you remember when crack emerged? The addicted guy would come home and sell his gas cylinder. Gambling is like that. People are selling what they don’t have, going into debt,” said the president.
According to Folha de S.Paulo, the government has not defined measures or a publication deadline. Reversing laws that legalized online gambling between 2018 and 2023 would require congressional approval, although government sources expect a “high-impact” decision.
Industry representatives believe the government could instead act through a decree or provisional measure. Options under discussion include banning betting advertising and online casino games such as “Tiger Game” and “Aviator.”
Both issues are regulated by an ordinance from the Secretariat of Prizes and Bets and could be reviewed by the Executive branch without Congress. Online casinos account for about 70% of betting revenue, according to industry representatives.
The debate follows Lula’s September 1 meeting with civil society representatives, influencers, and artists behind a bill proposed by the “Brazil Against Betting” movement.
The measure, advancing through House committees with support from PL, PT, and PSD lawmakers, would ban the “Tiger Lottery,” betting advertising at sporting events and on social media, and “high-risk products,” including online casinos and other games with instant results.
It would also prohibit sponsorship of clubs, competitions, sports broadcasts, cultural events, and digital influencers, along with traditional and social media advertising. Operators would be limited to institutional communication on their platforms and email campaigns to registered customers, without profit promises, bonuses, or appealing graphic resources.
The Brazilian National Association of Games and Lotteries (ANJL) criticized the sector’s exclusion from government meetings, while the Brazilian Institute of Responsible Gaming (IBJR) called for “a careful analysis of the available data” and offered to contribute. Both said discussions had confused regulated operators with pre-regulation practices.
Anonymous industry executives described the government’s position as electioneering and raised possible litigation over concessions granted under different terms. ANJL legal consultant Bernardo Cavalcanti Freire said: “The potential compensation impacts could reach around R$ 120 billion ($23.3 billion), a value that, precisely because of its magnitude, highlights the need for a prior and rigorous assessment before adopting any restrictions.”
Authorized operators also argue advertising restrictions could favor clandestine sites that do not employ Brazilian workers, pay taxes, or maintain player-protection policies.
The 2027 budget projects R$ 6.69 billion ($1.30 billion) from betting fees and the Union’s revenue share, excluding company taxation, and also includes expected selective-tax revenue.