Lula Delays Decision on Sports Betting as Brazil Consults Society

Brazilian President Luiz Inácio Lula da Silva has declined to commit to the future of sports betting in Brazil, stating that he will rely on consultations with civil society and impacted groups to form a stance.

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During the interview on SBT Brasil on September 10, Lula said the government had already collected and organised the opinions from the consultation process. He did not, however, make a statement on whether he would back the move to outlaw betting sites, or continue the existing system of regulation.

“I listened to society, we recorded everything they said, we have already mapped and systematized everything. Now, I will make a decision based on what I saw.”

Lula Consults Stakeholders Before Making Decision

Lula said that the discussion in the streets regarding bets was very polarized, with the proposal to close the betting platforms, keep them open, or punish the responsible. He said he didn’t want to bring up a position to start with, but that he wanted to listen to different groups that have a stake in the issue.

The president said those consulted included those who are against betting platforms, families affected by a gambling debt, and someone who knew of cases where suicide is linked to a gambling debt. Lula said he spoke to around 10 or 11 people, adding that the ultimate resolution would not take place without taking into account their opinion.

“I called all the entities involved with these bets. People who complained about bets, people who feel that their family is being robbed, people who know someone who took their own life because of betting debt. But I am not going to make a decision on my own. I am not president of myself, I am president of 215 million people.”

Upon being directly asked what his decision would be, Lula refused to give an advance indication.

“Don’t ask me what the decision is, because I am not going to tell you.”

President Has Previously Supported a Betting Ban

Lula’s new remarks come after the more robust stance he took in a meeting with civil society groups at the Planalto Palace on September 1. The president at the time stated that he personally prefers to ban gambling in Brazil, and that a more severe measure might be needed.

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“I think we have to make a more drastic decision. Because we don’t even have demand-pull inflation.”

Lula also asked if tax is an effective means of dissuading betting. He said that taxes don’t work as a deterrent unless they take a significant bite out of the profits of an enterprise, meaning that companies would still be running if the economic returns were high.

“Many times, when we think as a government, we say that we are going to charge taxes, thinking that we are going to make things more difficult. Taxes only make things difficult when they affect profits, but when it is the decision to legalize criminality, they pay without any problem.”

Betting Debate Also Enters Election Discussion

Lula went on to say that the Brazilian government does not know where many betting companies are headquartered, nor does it know where they pay their taxes, making taxation even a less effective regulatory measure.

The SBT interview was also about Lula’s government program and his hopes for the first round of Brazil’s election on October 4. The president is running for re-election for the Workers‘ Party (PT).

His strategy for gambling, looking at other parts of the economy, making the information systematic and then making the call, was also touted as an example of how he plans to rule if he is re-elected. This has led to the betting debate being both a regulatory matter and a political positioning of Lula ahead of the election.

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Source: BNL Data