Lula Signs Executive Order to Halt Online Betting Ahead of Election

Brazil’s President Luiz Inácio Lula da Silva signed an executive order on Friday prohibiting fixed-odds betting, just days before the first round of the presidential election. He stated the measure is intended to address the widespread issue of families falling into debt due to gambling.

The directive immediately halts the operation, offering, intermediation, and advertising of betting platforms. While it takes effect right away, it requires congressional approval within 120 days to remain in force. The order prevents new deposits and allows existing users until October 5th to withdraw their funds.

In addition to the ban, the government has proposed legislation to establish criminal penalties for offenses related to fixed-odds betting, which is the most prevalent form of online sports wagering. These offenses include promoting such betting and utilizing personal data to solicit bettors.

“I have decided to take a hard, drastic, and necessary action,” Lula told journalists in São Paulo. “It is like cancer; you must remove the tumor, or it will kill us.”

The president had previously condemned the betting industry during his address at the United Nations General Assembly earlier this week, accusing the sector of “transforming addiction into profit” and “destroying homes.”

Polls indicate that the ban enjoys broad public support in Brazil. However, Sen. Flávio Bolsonaro, Lula’s primary rival in the upcoming election, characterized the move as an “electoral measure.”

President Lula has been a vocal critic of online betting since at least April, when he first called for a ban. Opposition intensified during the FIFA World Cup, a period marked by ubiquitous advertisements and a surge in betting activity.

According to a 2025 study by the nonprofit Institute of Studies for Health Policies, gambling is estimated to cost Brazilian society approximately 38.8 billion reais ($7 billion) annually and contributes to increased rates of suicide and depression.

The central bank estimated last year that Brazilians spend roughly 30 billion reais ($5.7 billion) on bets each month. This figure includes expenditures by beneficiaries of the Bolsa Familia federal cash-transfer program, who were blocked from these platforms last year.

Last October, lawmakers, including many from Flávio Bolsonaro’s Liberal Party, rejected a presidential order that would have imposed tax hikes on online betting and virtual casinos.

Although gambling is illegal in Brazil, the nation legalized online betting in 2018 under former President Michel Temer. The industry expanded rapidly during the tenure of former President Jair Bolsonaro, Flávio’s father.

In December 2023, Lula signed a law to regulate and tax betting companies for the first time. Subsequently, his administration blocked over 2,000 irregular online betting websites, some of which were linked to criminal organizations such as the First Command of the Capital in São Paulo and the Red Command in Rio de Janeiro, as part of a broader effort to regulate the sector.

Lula and members of his administration have argued that banning online betting is essential to both plug a drain on the national economy and address a public health crisis, as many Brazilians struggle with addiction and financial ruin due to these platforms.

Business analysts estimate that sports betting, one of the models banned on Friday, generates over $4 billion in annual revenue in Brazil, making it one of the largest markets globally.

Prior to Friday’s announcement, Brazil’s leading soccer clubs raised alarms after betting companies warned that sponsorships would be terminated immediately if the government enacted the ban.

The industry warned that the move could mean “the end of Brazilian soccer,” a claim that was mocked by some social media users in the heavily soccer-focused nation.

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