Brazilian President Luiz Inácio Lula da Silva has signed a measure banning online sports betting and internet casinos, just days before the country heads to the polls.
The move comes as Lula seeks a fourth term in office and faces a closely contested election against Flávio Bolsonaro, the son of former president Jair Bolsonaro. Recent polling has shown the two candidates in a statistical tie in potential runoff scenarios.
Lula signed the provisional measure on Friday, effectively ending the operation of licensed online betting platforms in Brazil. The government has also moved to remove advertising for the sector and plans to introduce legislation aimed at strengthening penalties for illegal gambling.
The measure must be approved by Congress within 120 days to remain in force. Under the new rules, betting platforms are barred from accepting new deposits, while users are given a period to withdraw remaining funds.
Lula Calls Betting A Threat To Families
Lula has repeatedly criticised Brazil’s rapidly expanding online betting industry, arguing that gambling addiction is damaging household finances.
He has described the industry as a “cancer” and said: “Either we remove the tumour, or it kills us.”
The president said he had heard from families who had sold possessions because of gambling addiction.
Earlier this week, during the United Nations General Assembly, Lula accused the betting industry of “transforming addiction into profit”.
The sector was initially legalised in 2018 before Brazil introduced a regulated framework for online betting.
Lula Blames Previous Governments
Lula acknowledged that online betting was first authorised under former president Michel Temer, but argued that the industry expanded without sufficient regulation during Bolsonaro’s administration.
He said there had been inadequate safeguards, particularly to prevent children and teenagers from accessing online betting platforms.
“We won’t allow betting companies to profit at the expense of Brazilian families’ income and lives,” Lula said.
The government has also announced a separate bill targeting criminal offences linked to fixed-odds betting.
Bolsonaro Ally Calls Move Political
Flávio Bolsonaro criticised the crackdown during a campaign rally in Rio de Janeiro on Friday, describing it as “populist, hypocritical and politically motivated”, according to Reuters.
The timing of the ban has drawn attention because it was announced less than two weeks before Brazil’s first round of presidential voting.
A survey by Atlas and Bloomberg published this week found that 59.9% of Brazilian adults supported banning internet betting.
The government’s decision marks a major reversal for Brazil’s recently established regulated betting market, with the measure now facing Congress for approval.
