President Luiz Inacio Lula da Silva of Brazil has issued a warning about the country’s online sports betting market, threatening to shut it down due to concerns that government aid is being used for gambling. Lula made the statement while in Sao Paulo for the city’s municipal elections, stating that he will ban online betting if regulations do not address issues of addiction.
The popularity of sports betting in Brazil has grown significantly since it was legalized in 2018, with soccer being a major focus for bettors. However, recent studies have shown that online sports betting is negatively impacting household incomes, leading to reduced consumer spending and financial hardship for families.
One of the main concerns raised by Lula is that low-income families receiving financial assistance through the government’s Bolsa Familia program are using that money to gamble. A report from the central bank revealed that recipients of the aid spent a significant amount on gambling in August alone.
While Lula acknowledges the long-standing tradition of cultural betting practices in Brazil, such as illegal betting on lottery numbers and cockfighting, he is worried about the harmful effects of sports betting on the country’s poorest citizens. He emphasized the dangers of gambling addiction, recounting stories of individuals who have lost their homes and cars due to gambling.
The sports betting industry in Brazil has seen a boom following the passage of the Fixed-Odds Betting Law earlier this year. The country has approved licenses for 200 fixed-odds sports betting brands, making it the fifth-largest betting market in the world. Major corporate betting brands like Flutter Entertainment and Entain are among the licensees.
In anticipation of the launch of a regulated gambling market in Brazil on January 1, 2025, unlicensed gambling operators were required to cease operations by October 1. Despite the growth of the sports betting industry in Brazil, concerns about the misuse of government aid for gambling have prompted President Lula to consider drastic measures to address addiction and financial hardship caused by online betting.