Brazilian President Luiz Inácio Lula da Silva signed an order on Friday banning fixed-odds betting just over a week before the first round of the presidential election, in a move designed to tackle the problem of families falling into debt. The abrupt measure immediately halts the operation, offering, intermediation, and advertising of online betting platforms across the country.
The executive order took effect immediately upon signing in São Paulo, though it requires congressional approval within 120 days to remain permanently in force. Under the new restrictions, platforms are prohibited from accepting new account deposits, and users have until October 5 to withdraw any remaining funds. Alongside the ban, Lula’s administration drafted a complementary bill establishing criminal offenses for fixed-odds betting activities—such as active promotion and the unauthorized use of personal data to solicit punters.
Public Health Stakes and Economic Impact
Defending the drastic intervention during a press conference in São Paulo, Lula compared the online gambling phenomenon to a malignant illness. “I made the decision to take a hard, drastic and necessary measure,” he told journalists, adding, “It’s like cancer, you take out the tumour, or the tumour will kill us.” Days earlier at the United Nations General Assembly, Lula accused the betting industry of transforming addiction into profit and destroying homes.
The administration’s crackdown follows mounting data regarding the societal toll of online gambling. A 2025 study by the nonprofit Institute of Studies for Health Policies estimated that betting and gambling cost Brazilian society 38.8 billion reais annually while driving up rates of suicide and depression. Brazil’s central bank estimated last year that citizens spent roughly 30 billion reais on bets each month. That expenditure previously included funds from beneficiaries of Bolsa Familia, the federal cash-transfer welfare program, which the government blocked from betting platforms last year.
Political Repercussions and Industry Pushback
The ban has triggered sharp political division in the soccer-mad nation, where polls indicate the policy commands substantial public support. Senator Flávio Bolsonaro, Lula’s primary rival in the upcoming election, denounced the decree as an electoral maneuver. Gambling has operated in a legal gray area since online betting gates opened in 2018 under former President Michel Temer, expanding rapidly during Jair Bolsonaro’s presidency.
Business analysts project that sports betting revenues exceed $4 billion annually in Brazil, making it one of the largest markets globally. Ahead of Friday’s decree, major Brazilian football clubs warned that a ban could trigger the immediate cancellation of lucrative betting sponsorships and spell ruin for domestic soccer—warnings that faced widespread skepticism online. Lula’s administration previously attempted to regulate and tax the industry through a December 2023 law and subsequently blocked more than 2,000 irregular websites, including platforms tied to criminal organizations such as the First Command of the Capital and the Red Command of Rio de Janeiro.