President Luiz Inácio Lula da Silva’s Government is preparing a new crackdown on Brazil’s online betting market in an effort to tighten regulation and limit access.
The initiative aims to reduce the financial impact of these platforms and their contribution to household debt while introducing potential restrictions on certain categories of bettors alongside stricter advertising rules.
The planned measures are the result of cooperation among the Ministries of Finance, Planning, and Justice, under the coordination of the Civil House.
A Presidential Decree is expected by mid-May and is set to include a ban on online betting for individuals who join the Government’s forthcoming debt refinancing programme.
Another key focus is advertising. The Government plans to target practices it considers misleading or likely to encourage compulsive behaviour. This would include efforts to restrict highly targeted promotions and offers aimed at vulnerable or at-risk users.
In early April, Lula stated that the country could move to shut down betting operators, citing concerns about household debt and social impact.
In the view of the Presidential Palace, online betting companies have become a major driver of rising household debt in Brazil.
This latest assessment is also linked to the Government’s political analysis, which suggests that the growth of the betting sector and its economic impact on households are key political challenges, affecting Lula’s approval ratings and shaping the broader electoral outlook for the October elections.
The issue has become increasingly political ahead of the 2026 elections, with Senator Flávio Bolsonaro, Lula’s biggest competitor, drawing attention to the betting sector's impact on household financial pressure.
According to the Brazilian Institute of Responsible Gaming (IBJR) the sector accounts for between 0.2% and 0.5% of family consumption, while credit cards remain the primary driver of debt
