Lula Bans Online Sports Betting Ahead of Brazil Election

Brazilian President Luiz Inacio Lula da Silva has banned online sports betting platforms days before the country’s October 4 presidential election, in a move targeting an industry that has expanded rapidly in recent years.

Finance Minister Dario Durigan announced the measure on Friday at an event with Lula, saying people would no longer be able to deposit money into betting platforms operating in Brazil.

“It is no longer possible to deposit money into betting sites in the country,” Durigan said. 

The government said it had initially sought to regulate the industry after a framework was introduced in 2023, but concerns over its social and financial impact led to the decision to prohibit it.

Durigan said about 60 billion reais, or roughly $11 billion, had flowed from Brazilian households to legal betting companies and argued that the industry had contributed to rising household debt and other social problems.

He also said some people had taken their own lives over betting-related problems, describing the situation as a public health concern.

New advertising contracts for betting companies have also been banned with immediate effect, while existing sponsorship agreements will become void after October 6.

From that date, the government said there would be no legal betting sites, applications or sponsorship arrangements in the country.

Brazil’s betting industry has become a major presence in sports advertising, particularly football. Thirteen of the country’s 20 top-flight clubs have betting companies as their main shirt sponsors.

Football stars including Neymar and Vinicius Junior have also featured prominently in promotions for betting platforms.

Lula has previously described gambling as a disease, while opinion polls cited in the report show strong public opposition to the industry.

The ban has drawn criticism from parts of the sports sector.

Flamengo, one of Brazil’s leading football clubs, warned that the decision could have consequences beyond professional football, potentially affecting youth academies, women’s football, Olympic sports and other competitions.

The club also criticised the government’s reversal of the regulatory framework, arguing that companies and sporting organisations had made commitments based on the rules introduced in 2023.

The betting ban comes days before Brazil’s first round of voting on October 4, with Lula seeking a fourth term and facing a close contest with right-wing Senator Flavio Bolsonaro, according to opinion polls cited in the report.