Lula bans sports betting days ahead of Brazil’s election

Brazil’s president Luiz Inacio Lula da Silva on Friday banned online sports betting sites, a divisive billion dollar industry, just days before an election in which he is seeking a fourth term in office.

Gambling has exploded in Brazil in recent years, dragging many into debt, and opinion polls show strong voter opposition to the industry, which Lula has labelled a “disease.”

“It is no longer possible to deposit money into betting sites in the country,” said finance minister Dario Durigan, announcing the ban at an event alongside Lula.

The initiative is the latest in a flurry of moves made by Lula before a first round of voting on Oct 4, as he stands neck-and-neck with right-wing senator Flavio Bolsonaro in the polls.

Brazil’s betting market has boomed since a regulatory framework was established in 2023, accompanied by aggressive advertising both on the streets and online from influencers and sports stars.

Durigan said the government had attempted to regulate the industry, but it had become a public health issue, with more than 60 billion reais (US$11 billion) flowing from families to legal betting companies.

“This is causing distress and shame. People are even taking their own lives because of it. Household indebtedness has become a serious issue, largely due to betting platforms,” said Durigan.

He added that new advertising contracts for betting companies, which are major sponsors of football clubs in Brazil, were also immediately banned, while current contracts would be void after Oct 6.

As of that date there will be no “site, no application and no legal sponsorship of bets in the country.”

Thirteen of the country’s 20 first division football clubs have an online betting site as their main shirt sponsor.

Stars like Neymar and Vinicius Junior are among the most prominent faces in advertising for the industry.

“This change deals a heavy blow to Brazilian sports,” said powerhouse club Flamengo before the decision was made official, warning it could impact not only professional football, but youth academies, women’s football, Olympic sports and various championships.

“Brazil spent years debating how to regulate sports betting. One cannot establish a rule, induce companies and institutions to make commitments based on it, and then, overnight, overhaul the entire regulatory framework,” the club said in a statement.

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