President Luiz Inácio Lula da Silva’s recent call for a nationwide ban on online gambling has ignited a strong response from Brazil’s licensed betting industry. During a televised address marking International Women’s Day, Lula highlighted what he described as the dangers of mobile betting, emphasizing its role in indebting families and particularly affecting women. He expressed concern over gambling addiction, calling for a united effort from the government, Congress, and the judiciary to prevent online casinos from causing financial hardship at home. Brazil’s Gambling Ban
However, industry representatives have voiced sharp criticism of Lula’s stance. They argue that such a ban would undermine the newly established regulatory framework, which was designed to bring order and safety to the market. Critics warn that prohibition would push consumers towards unlicensed operators, where safeguards like Know Your Customer (KYC) checks and technical standards are often absent. Ramiro Atucha, CEO of Atucha Strategic Advisory, described Lula’s remarks as “disrespectful” to legitimate operators, warning that they could damage investor confidence and hinder future industry growth. He emphasized that the problems linked to online gambling are primarily associated with unregulated sites rather than the licensed market.
Lula’s comments also sparked concern among social groups advocating for women’s rights and gender equality. The Association of Women in the Gaming Industry (AMIG) expressed surprise and worry over the president’s rhetoric, especially on International Women’s Day. They criticized what they saw as a lack of understanding of the sector’s role and the contributions women make within it. AMIG stressed that this day is a reminder of the need to promote opportunities for women and ensure their leadership across all sectors, including gaming and betting. They argued that threatening the industry on such a symbolic date was inappropriate and could harm working women who support their families ethically and with dignity.
From a legal perspective, experts like Udo Seckelmann, a partner at Bichara e Motta Advogados, pointed out that Lula’s push for a ban reveals a misunderstanding of the existing legal framework. Offshore and unlicensed operators have operated in Brazil for years before the regulation was introduced in December 2023 under Law No 14,790/2023. This legislation aimed to bring these activities under official supervision, with licensed operators now subject to strict compliance requirements, including high licensing fees and taxes.
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Seckelmann noted that banning licensed platforms would not eliminate the market; instead, it would likely drive it further underground, where oversight is minimal or nonexistent. He added that reversing the current regulation would require new legislation and broad political support, which seems unlikely at this stage.
Despite overseeing the legalization of online betting, Lula’s government has continued to seek ways to increase fiscal revenue from the sector. Efforts to raise the gambling tax from 12% to 18% have failed, though a phased increase will see the rate rise to 15% by 2028. The government views gambling as a potential source to help address a BRL20 billion budget shortfall, especially after attempts to increase the financial transactions tax from 0.38% to 3.5% were unsuccessful. In July 2025, Finance Minister Fernando Haddad publicly stated he would support banning gambling if such legislation came before the Chamber of Deputies, highlighting ongoing tensions between regulatory intentions and fiscal policies.
