Fernando Haddad, a candidate for Governor of São Paulo, said he intends to ban betting platforms in the state if elected, describing the growth of online betting as an "epidemic."
The former Finance Minister said the sector's social impact outweighs any benefit from tax revenue.
"When we became aware of the scale of the problem, I was perhaps the first to say: we're living through a betting epidemic," he said, adding that many bettors struggle to manage their relationship with betting platforms.
Contrasting his position with Governor Tarcísio de Freitas, who authorized betting in São Paulo and even approved a São Paulo Times Square, Haddad said: "Tarcísio authorized betting companies in the state. I'm going to ban them. I don't want them here because it's unfortunately become an ecosystem of financing, media and football clubs."
He argued the sector's economic scale shouldn't outweigh its social costs. "I'll defend ending this, because there's no tax revenue that justifies the harm it's doing to Brazilians. In my opinion, the best decision is to find another path, because this isn't doing anyone any good."
Haddad said his view hardened specifically after becoming Finance Minister, during which the Federal Government advanced regulation and taxation of fixed-odds betting.
Current Finance Minister Dario Durigan said separately that the economic team isn't opposed to banning sports betting nationally, saying that generating tax revenue doesn't justify rising household debt.
"The Finance Ministry has enforced the 2023 law rigorously. If the law proves insufficient, that could lead the Federal Government to toughen it. If it harms people, the tax revenue doesn't justify it."
Brazil's Health Ministry reported a nearly 140% increase over the past five years in demand for mental health services within the public healthcare system (SUS) linked to online gambling addiction.
According to the Institute for Health Policy Studies, online betting-related harm costs SUS BR30.6bn ($5.9bn) annually
