Lula Government Prepares New Measure to Restrict Sports Betting in Brazil

Sources at the Presidential Palace are reporting that Brazil’s government, led by President Luiz Inácio Lula da Silva, is moving to take further steps restricting sports betting and online gambling.

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The government is mulling issuing a provisional measure to Congress as early as next week. It would become effective as soon as any approved measures became effective, but the final substance is still up for discussion. Leading the debate is the Chief of Staff’s Office that is evaluating the various restrictions.

Some of the measures being considered are limitations on certain gambling products, such as online casinos like “Tigrinho” and possibly some sports betting products. But it has not been decided just what the measure will cover.

Government Divided Over Scope of Restrictions

There are federal government jobs that are still available. One faction, which is more moderate, is pushing for more targeted measures, chiefly against illegal betting operators, while the Ministry of Finance, which has long ruled over much of the regulation of betting in Brazil, is said to be opposed to a more sweeping restriction.

The government is also looking at the economic and social consequences of the strengthening of the rules. Sources in the report say officials are looking at concerns about household debt and an uptick in gambling addiction, as well as the impact restrictions might have on the regulated market.

The type of provisional measure is also related to the political calendar. Polling data from Lula’s Workers’ Party (PT) shows that three out of four Brazilians are against betting, especially among women, who and young people are considered key to Lula’s re-election campaign.

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Lula Signals Possible “Drastic Measures”

Lula has said in public that he personally believes that sports betting should be banned, but has clarified that his stance was not his duty as president. In a meeting at the Presidential Palace, he said he would personally end betting, as it is a harm to society, and during the decision-making process, he said, “I, personally, would end betting. I think it is a harm to society. Now, as President of the Republic, I know that I have to share decisions in order to make them in the most appropriate way possible, without compromising the political, economic and social stability of this country.”

He added: “We have to take action as a State, whether we are going to take drastic action or not. I asked you to come here because I wanted to hear what society thinks […] Two-thirds of the decision has already been made; this meeting was missing so that we can sign it and make this decision.”

Society Consulted as Government Weighs Next Steps

Lula’s meeting gathered representatives from economic sectors, civil society organizations, specialists and artists to discuss the impact of betting. There was no attendance at the meeting from betting companies or representatives from the regulated betting industry.

In discussing the measures the government has taken to help households to cope with their finances, Lula said that some families had not been able to benefit from the measures that had been taken, such as enlarged income-tax exemptions and discounts on electricity bills and cooking gas, due to debt that they allegedly owed in connection with gambling.

It is now believed the government will decide on the extent of the proposed MP, whether to be more specific about which gambling products to restrict, or to be more focused on illegal operators. Any measure that went to Congress would continue to be subjected to the same process as provisional measures.

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Source: CNN