Lula government renews criticism of betting sector and raises possibility of a ban in Brazil
During an interview on the programme Bom Dia, Ministro, broadcast by CanalGov, Minister of the General Secretariat of the Presidency, Guilherme Boulos, stated that the regulation approved by Congress “did not solve” the sector’s problems and accused betting companies of involvement in money laundering, financing digital campaigns against Lula’s government and lobbying Congress to avoid taxation of the market.
The statements were made yesterday, as the federal government attempts to introduce new measures against online betting, mainly due to concerns over household indebtedness and the social impacts of gambling addiction. The issue has already been discussed behind the scenes in Brasília since the progress of the regulation in 2023.
According to Boulos, the government of President Luiz Inácio Lula da Silva acknowledges that the measures approved so far have failed to address the problems related to online betting. “Lula attempted regulation in Congress, which was approved, but it did not solve the issue,” the minister said.
In addition, Boulos stated that several companies in the sector appear in investigations related to money laundering and criticised the current tax model applied to betting operators. According to him, the platforms pay less tax than salaried workers, which he described as “a scandal”.
“These betting platforms have become an epidemic. There is no point banning casinos if they are in the palm of your hand. […] They are eroding Brazilian families, they are taking money from Brazilian workers. […] It is something that is consuming workers’ free time, turning it into time of addiction, destroying social coexistence and ruining families with debt.” Guilherme Boulos said during the live broadcast.
Government links online betting growth to household debt
In recent weeks, some members of the government have begun directly associating the growth of online betting with rising household debt in Brazil. The topic was even included in discussions surrounding the new Desenrola Brasil 2.0 programme launched by the Ministry of Finance.
One of the announced measures states that users joining the debt renegotiation programme will be prohibited from using betting platforms for one year. The government’s justification is to prevent people from falling back into cycles of debt because of online gambling.
According to the National Association of Games and Lotteries (ANJL), “the indebtedness of Brazilians is strongly associated with the high interest rates practised in the country, and attributing responsibility for Brazilian household debt to betting ignores the structural causes of the problem”.
The issue has also gained traction due to the explosion in popularity of online casinos, especially games such as Fortune Tiger, popularly known in Brazil as the “Jogo do Tigrinho” (“Little Tiger game”). These games have dominated advertising campaigns on Brazilian social media over the past two years, driven by digital influencers, streamers and aggressive affiliate campaigns.
The rapid growth of the sector has turned Brazil into one of the world’s largest online betting markets by user numbers. At the same time, debates have intensified over excessive advertising, gambling addiction, protection of minors and misuse of illegal platforms.
The chart below, from Blask, an international market intelligence platform specialising in the iGaming industry, shows the evolution of Brazilian users’ interest in online betting platforms over recent months, indicating consistent market growth until reaching an estimated 239.4 million visits in April 2026, an increase of 6.97 percent compared with the previous month. The chart illustrates how Brazil rapidly became one of the world’s largest iGaming markets in terms of digital activity, even after the advancement of federal regulation.
Critics say prohibition would strengthen the illegal market
The point raised by critics of a market ban is precisely that prohibiting betting would not eliminate the market but would instead push millions of Brazilians back towards illegal platforms operating without state supervision.
This was the exact argument used by Magnho José, president of the Brazilian Legal Gaming Institute (IJL) and editor of BNLData. According to him, the current debate ignores the progress achieved through regulation and could once again strengthen the underground market.
“The real issue is not whether it should exist, but who governs it — the State or illegality,” he said, according to Yogonet. He also described the period between the legalisation of sports betting in 2018 and effective regulation as a “wild period”, marked by the absence of state control.
The regulation of sports betting in Brazil began during the government of Michel Temer, when the law authorising fixed-odds betting was sanctioned. However, the sector operated without operational rules for several years. Only under the Lula government in 2025 was the regulation finalised, including definitions of licences, taxation, advertising rules, and compliance requirements. Even so, the issue remains far from a consensus within the government itself.
Betting debate gains political relevance ahead of 2026 elections
The discussion has also gained political weight due to the approach of the 2026 elections. The fight against betting platforms has increasingly appeared in the discourse of members of the Workers’ Party (PT) and allies of the government, especially on issues related to popular consumption, family income and social protection.
In recent months, different bills have begun circulating in the National Congress proposing stricter restrictions on betting advertising, limitations on online casino games and even the blocking of certain gaming verticals considered more psychologically aggressive.
Among the arguments used by lawmakers in favour of restrictions is the operation of games based on variable reward algorithms, a mechanism frequently associated with behavioural addiction. This is the case of Pedro Uczai, leader of the PT in the Chamber of Deputies, who introduced a bill to criminalise betting in Brazil.
This article was first published in Portuguese on 14 May 2026.
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