Brazilian President Luiz Inácio Lula da Silva announced Wednesday his support for completely shutting down internet gambling platforms throughout the South American country, where the industry generates over $4 billion annually and represents one of the world’s largest betting markets.
The 80-year-old president, seeking reelection this October, described online gambling as creating “a massive tragedy” for countless Brazilian families struggling with mounting household debt.
“If it is up to me, we close them,” Lula stated during his interview with ICL Noticias website. “I am deeply worried about the indebtedness of the Brazilian people. If these platforms cause harm, why don’t we end them? We are discussing this very seriously.”
Lula acknowledged that implementing such a prohibition would need legislative approval, noting that many lawmakers maintain connections with gambling companies.
Internet sports wagering gained legal status in Brazil during 2018 under legislation signed by former President Michel Temer. Lula’s progressive government established industry regulations in 2025 following the previous year’s blocking of multiple betting platforms.
Officials now want to increase tax rates on these companies beyond the existing 12% levy on their earnings.
Industry representatives have supported creating regulations for a more trustworthy marketplace, but warn that raising taxes could prevent domestic companies from establishing operations in Brazil while international sites continue accessing Brazilian customers without licensing fees or other obligations.
Data released in March by a Brazilian trade and services organization revealed that more than 80% of the nation’s households carry some form of debt, marking the highest percentage since 2010. Economic experts have linked portions of this debt increase to the country’s expanding online betting sector.
Numerous Brazilian faith communities and social advocacy organizations have consistently denounced gambling companies for their influence, particularly since other forms of gambling remain illegal throughout Brazil. These betting firms serve as sponsors for nearly all major soccer teams competing in the country’s top two professional leagues.
Current and former soccer stars, including Vinícius Júnior, Ronaldo Nazário and Roberto Rivellino, serve as promotional ambassadors for both domestic and international betting brands.
