Brazilian President Lula Bans Fixed-Odds Sports Betting Ahead of Elections

Brazilian President Luiz Inácio Lula da Silva has signed a provisional executive order banning fixed-odds sports betting across the country, just over a week before the first round of the presidential election. The immediate measure halts the operation, offering, intermediation, and advertising of sports betting, which Lula described as a necessary step to prevent families from falling into debt.

The executive order takes effect immediately but requires approval from Congress within 120 days to remain permanently in force. Under the new rules, new deposits into betting accounts are prohibited, and existing platform users have been given until October 5 to withdraw their remaining funds. Alongside the order, the administration has drafted legislation proposing criminal penalties for activities related to fixed-odds betting, including promoting platforms and using personal data to solicit customers. Speaking in São Paulo, Lula characterized the decision as a drastic measure required to address a growing crisis, comparing the industry to a tumor that needed removal.

Economic and Health Impacts Driving the Ban

The government's decision follows growing public concern over the economic and social consequences of online gambling. Lula previously criticized the sector during the UN General Assembly, accusing it of profiting off addiction and destroying households. Public dissatisfaction intensified during the FIFA World Cup due to ubiquitous advertising and a surge in participation.

According to a 2025 study by the Institute of Studies for Health Policies, betting and gambling cost Brazilian society an estimated 38.8 billion reais (£5.6 billion) annually while contributing to higher rates of depression and suicide. Central Bank estimates from last year indicated that Brazilians spend roughly 30 billion reais per month on bets, a figure that previously included spending by recipients of the Bolsa Família welfare program before they were blocked from platforms last year. Business analysts estimate annual revenues for sports betting in Brazil at over $4 billion (£3 billion), making it one of the largest markets globally.

Political Reactions and Industry Concerns

While polls indicate broad public support for the ban, the move has drawn sharp political criticism. Flávio Bolsonaro, Lula's main presidential rival, described the ban as an electoral maneuver. Political resistance to regulating the sector is not new; in October of last year, lawmakers, including many from Flávio Bolsonaro's Liberal Party, defeated a previous proposal by Lula to raise taxes on online betting and virtual casinos.

Although gambling is generally illegal in Brazil, online betting was permitted in 2018 under former President Michel Temer and expanded significantly during the presidency of Jair Bolsonaro. In December 2023, Lula enacted a law to tax and regulate betting companies, later blocking over 2,000 unregulated websites, including some tied to organized crime groups such as the First Capital Command and the Red Command.

The ban has also raised concerns within the sports sector. Major Brazilian football clubs warned that betting companies threatened to terminate sponsorships immediately if a ban was enacted, claiming the loss of revenue could severely damage Brazilian football.