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The provisional executive order signed by Lula prohibits the exploitation, intermediation and advertising of all forms of online betting and immediately bars new deposits into player accounts. Bettors have until October 5 to withdraw remaining funds, after which platforms must cease operations in Brazil with app stores and internet providers required to block access starting October 6, according to Finance Minister Dario Durigan. The order will remain in force only if Congress approves it within the next 120 days. Durigan described online betting as a serious public health issue during the announcement in Sao Paulo.
Lula characterized the industry as a “cancer” that required removal to prevent it from destroying families, stating that either the tumour is removed or it kills the patient. He noted that while the legal framework originated under former President Michel Temer in 2018, the sector expanded without adequate safeguards during Jair Bolsonaro’s administration. The president has repeatedly criticized online gambling for transforming addiction into profit, including in a recent address to the United Nations General Assembly.
Prior to the ban, Brazil’s regulated online gambling market had experienced explosive growth. Bradesco BBI analysts estimated that gross gaming revenue reached $17 billion in 2025, up 33 percent from the previous year, and had been projected to hit $20 billion in 2026. The sector accounted for roughly 3.4 percent of Brazilian retail sales, with more than 25 million active players participating according to industry reports.
Public support for the prohibition appears strong. An Atlas and Bloomberg survey published this week found that about 60 percent of Brazilian adults back a ban on internet betting, while other recent polls placed support as high as 75 percent. The timing of the announcement, nine days before the first round of voting, coincides with Lula seeking a fourth term in a contest that opinion polls show is nearly tied with challenger Flávio Bolsonaro.
Senator Flávio Bolsonaro denounced the move as populist and politically motivated during a campaign event in Rio de Janeiro. The National Association of Games and Lotteries warned that the ban would drive more than 30 million gamblers toward unregulated illegal websites and fail to respect the substantial investments made by licensed operators. Industry representatives have indicated they will seek compensation for the revocation of licenses granted under the 2025 regulatory framework.
The government paired the gambling prohibition with a new debt relief initiative aimed at easing household financial pressures. Lula also forwarded legislation to Congress that would criminalize certain activities related to fixed-odds betting, including promotion and data-driven solicitation of bettors. A report by the Institute for Health Policy Studies placed the annual cost of gambling-related harm to Brazil’s public health system at 38.8 billion reais, equivalent to approximately $7.7 billion.
