Brazilian President Luiz Inácio Lula da Silva has said the country could move to shut down betting operators, mentioning concerns over household debt and social impact.
Lula criticized what he described as a national “uncontrolled gambling” and questioned the role of the sector in the economy.
“If it depends on me, we will ‘close’ betting operators. Obviously, it depends on Congress and discussion,” he said.
He also acknowledged the political complexity surrounding the issue, adding that the sector maintains influence across different levels of Government.
The comments come as the administration reviews measures to address rising levels of household indebtedness.
According to recent data from the National Confederation of Commerce (CNC), 80.4% of Brazilian families currently hold some form of debt, the highest level recorded in the survey’s history.
Lula indicated that the Government is evaluating whether stricter regulation or even a reduction in the number of operators could mitigate financial pressure on consumers.
“If betting causes the harm we think it does, why don’t we make it illegal? Or, at least, regulate it so there are not so many operators in Brazil,” he said.
The betting market, authorized in 2018 and formally regulated in recent years, has expanded rapidly, becoming a significant presence in sports sponsorship and digital entertainment.
How did industry bodies respond to Lula’s statement?
The Brazilian Institute of Responsible Gaming (IBJR) responded by defending the regulated market and warning against a full shutdown.
In a statement, the organization said: “Ending the legal market would not eliminate demand, but would push users into informality, removing protection mechanisms and significant public revenue.”
Addressing concerns around indebtedness, the institute argued that betting represents a limited share of household spending.
According to data cited in its statement, the sector accounts for between 0.2% and 0.5% of family consumption, while credit cards remain the primary driver of debt.
The organization also emphasized safeguards within the regulated environment, including identity verification, spending limits and self-exclusion tools, positioning regulation as the main mechanism for consumer protection.
The IBJR has also supported initiatives such as a digital version of Brazil’s Child and Adolescent Statute (ECA), aimed at strengthening consumer protection in online environments
