President Lula steps up criticism of Brazil betting sector

In recent months, President Lula has significantly stepped up his criticism of online betting companies in Brazil.

In speeches and interviews, he has been reinforcing claims made by a more conservative segment of society that gambling has become a social problem. Citing unverified information, Lula has linked gambling to indebtedness and the erosion of labour conditions.

Lula has repeatedly described these betting companies as a “scourge of lies”, specifically criticising their impact on young people and low-income workers. The president stated that, were it up to him, he would put an end to them. In a speech at the Ministry of Labour, he characterised sports betting as a financial trap for workers.

In interviews with two podcasts, Lula renewed his attack on the gambling industry. “If no one can show me a social justification for these betting platforms to continue, we have to put an end to them,” he declared.

Clashes in Congress

Lula stated that he was aware of the existence of the “betting lobby” in Congress, suggesting that the industry exerts political influence to defend its interests. Given this situation, Lula believes that the proposal to abolish the industry will be difficult to implement. 

“I know there’s a gambling lobby in Congress,” he said. “But it is a fight we will have to take on, because society cannot be destabilised by something we can control.”

Although he does not voice it, Lula has another concern. Government coffers were bolstered by gambling to the tune of nearly BRL7.3 billion in the first half of 2026. In 2025, Brazil collected nearly BRL10 billion from the activity, excluding concession and regulatory fees. Ending the activity means this revenue stream would be lost, potentially placing further strain on the budget.

The government’s concern is also based on recent data released by the Ministry of Finance. According to Finance Minister Dario Durigan, more than five million Brazilians are already barred from betting.

Beyond the legal and regulatory battle, there is a political-electoral component to Lula’s strategy. The president has used the issue of online betting to reinforce his advocacy for formal employment. Furthermore, he criticises economic models that, in his view, exploit the population’s financial vulnerability.

Dealing with government agencies

Rhetoric against betting has become part of his campaign narrative, linking the fight against the industry to the agenda of social protection and tackling debt.

The president said the government is addressing the issue with the ministries of finance, planning and justice. According to reports, Lula’s goal is to evaluate measures that would help mitigate the effects of betting on society. “We are working with the ministries so that we can take action,” he said.

Illegal market

Lula’s stance against sports betting runs up against a sensitive issue. Banning the activity will not put an end to sports betting and online gambling. It will simply drive them into the illegal market, which accounts for between 38% and 44% of the total, according to a study by LCA and Instituto Locomotiva.

Bernardo Freire, legal counsel for the National Association of Games and Lotteries (ANJL), stated that banning betting websites will drive bettors to illegal platforms. In his view, banning licensed companies amounts to “complicity with crime”.

At an ANJL event with Grupo Globo, he said that shutting down betting sites will strengthen the illegal market. “If 40% of the population is already in this market today, the ban will drive the 60% who bet on licensed platforms to the illegal ones,” he said.