Lula Places Betting Restrictions at Center of Campaign as Online Casinos Face Possible Ban

Brazil’s President Luiz Inácio Lula da Silva has been using the issue of online betting as the main topic in his campaigns for the next re-election in 2026 and has stated his approval for measures to be taken against online casinos, including the games commonly referred to as “Tigrinho.” According to Folha de São Paulo, after Lula’s return from the UN General Assembly, the government is expected to consult allies on the last details of the measures.

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Those in government who have been engaged in the talks have said a new measure will bring a number of restrictions to the betting industry. The proposed measures reportedly span from a general ban to a more specific ban on online casinos, and sports betting may be subject to further advertising limitations. The government’s current talks come at a time when the regulated market is under growing political scrutiny.

Legal and Enforcement Challenges

The existing authorisation system is one of the challenges to a more widespread ban. Regulated operators have paid R$30 million for each five-year operating permit, and if they are barred prior to the expiration of these permits, it would create a legal battle regarding contractual rights and possible compensation.

One worry is enforcement. The government officials say they are aware that the ban on platforms would be ineffective if consumers could still access them through other means. Effectiveness in blocking prohibited services is another factor to be taken into account when deciding on the extent of any new measure.

The question is also one for Congress because any Provisional Measure or bill would have to be taken up there. Betting’s connections with digital influencers have also been thrown into the political arena as government allies question how the influencers might respond if their commercial activities are impacted.

Betting Restrictions Become Campaign Issue

Betting has been more and more part of Lula’s campaigning. Campaign ads that discuss the matter contain reports from people who claim they’ve run up debt due to gambling, Folha reports. This topic has also been in recent campaign events in Guarulhos and Florianópolis.

During the rally in Guarulhos on September 18, Lula spoke about a person who was helped by the government to pay off their gambling debts, but later found themselves in debt to the game. The president spoke about what the person said:

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“I asked, ‘Are you gambling?’ He started crying and said, ‘I owe R$50,000, President. I already spent your R$24,000 and I owe another R$50,000. I am going to kill myself.’”

Lula, who in the past has said he would personally ban betting in Brazil, has also admitted that other factors involved in the decision on the sector are Congress.

Regulated Market Faces Broader Debate

Brazil has a regulated betting system in place. Legalization of betting occurred during the Temer government in 2018, and detailed regulation during Lula’s first year of the current government. The regulated market opened in 2025, with 85 companies granted access to it by paying a R$30 million grant fee.

Those who want to tighten up the restrictions have associated the betting with addiction, issues of household debt and consumer protection. Meanwhile, football clubs and other stakeholders have raised concerns about the financial impact of significant regulations on the regulated sector. Recent discussions have included both the possibility of banning online casinos and imposing tighter rules on sports betting advertising.

The proposal is in its final stages of discussion and, if passed, could impact online casino operators, sports betting businesses, advertisers, football clubs, and consumers throughout Brazil.

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Source: BNL Data