Brazil’s President Luiz Inacio Lula da Silva has issued an executive order banning online betting operations across the country, marking a significant policy shift less than two years after the government established a legal framework for the industry. The order, which took immediate effect on Monday, will require congressional approval within 120 days to remain in force.
The announcement came amid a tightening presidential race ahead of the October 4 first-round election, with Lula facing strong competition from right-wing Senator Flavio Bolsonaro, the eldest son of former president Jair Bolsonaro. The ban is part of a broader set of measures introduced by Lula’s administration, including a new debt relief program aimed at alleviating household financial burdens.
The move reflects growing government concerns about the social and economic impact of online gambling in Brazil, Latin America’s largest economy. Finance Minister Dario Durigan described online betting as "a public health issue" and cited rising gambling expenditures as a factor contributing to record household indebtedness. Recent surveys indicate that approximately 75% of Brazilians support a full ban on online betting.
As part of the transition, betting websites will remain accessible until October 5 to allow users to withdraw remaining funds. Starting October 6, app stores and internet service providers will be directed to block access to these sites.
The ban has drawn criticism from Flavio Bolsonaro, who dismissed the policy as "populist, hypocritical and politically motivated" during a campaign event in Rio de Janeiro, framing it as an election tactic rather than a genuine response to economic issues.
Online betting was first legalized in Brazil in 2018 under the administration of former president Michel Temer but remained largely unregulated during Jair Bolsonaro’s tenure. In 2023, Lula signed legislation that established formal rules for the sector and expanded authorization to include online casino games alongside sports betting. Since January 2025, licensed operators have been allowed to provide services nationwide after meeting regulatory standards and paying concession fees.
Despite Brazil’s current economic strengths, including record-low unemployment and moderate inflation, officials note that losses from online betting have contributed to public dissatisfaction with economic conditions. The Finance Ministry estimates that Brazilian households spend approximately 60 billion reais (about RM47 billion) annually on online betting, underscoring the scale of the market and the government’s rationale for intervention.