The president of Brazil, Luiz Inácio Lula da Silva, has intensified his criticism of the previous government by holding Jair Bolsonaro responsible for the massive proliferation of online betting platforms currently affecting the South American country, in statements marking the start of his re-election campaign for 2026.
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The Presidential Accusation Against the Previous Government
During an official event in Rio Grande do Sul, Lula stated that both Catholic and Evangelical sectors traditionally opposed gambling in Brazil. The president pointed out that while Jogo do Bicho, a traditional illegal lottery, continues to be considered a crime, the previous government brought casinos directly into Brazilian homes through mobile phones.
The president’s discursive strategy aims to establish a clear contrast between his administration and that of his predecessor, within the framework of what he himself called the “year of comparison” between the two governments, according to local media reports.
The Context of Legalization: From 2018 to the Present
The timeline of betting regulation in Brazil presents two clearly differentiated stages. In 2018, during Michel Temer’s government, Law 13.756 was approved, authorizing fixed-odds betting on sports events, but this regulation was not implemented during Bolsonaro’s term between 2019 and 2022, allowing the market to operate in a legal gray area for several years.
The situation changed radically with Lula’s return to power. At the end of 2023, Law 14.790 was sanctioned, establishing a comprehensive regulatory framework that came into effect on January 1, 2025, requiring official authorization from the Ministry of Finance to operate betting platforms in Brazilian territory.
The Current Regulatory Framework and Its Challenges
The new legislation has completely transformed the betting landscape in Brazil. Companies must now pay a license fee of 30 million reais (approximately 5.4 million dollars) for five years of operation, in addition to complying with a 12% tax on gross revenue. Bettors, on the other hand, face a 15% tax when their net winnings exceed certain thresholds.
During the first round of authorizations, 30 websites from 14 companies received permanent authorization for five years, while 52 additional companies obtained temporary permits, generating revenue of 2.010 billion reais (324 million dollars) for the Brazilian State.
Social Impact: A Public Health Problem
The figures reveal the magnitude of the phenomenon. A study by the Central Bank of Brazil determined that in August 2024, approximately 5 million beneficiaries of the Bolsa Familia social program transferred 3 billion reais (542 million dollars) to betting platforms.
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President Lula has not hidden his concern about the health aspect of this situation, stating that gambling addiction requires specialized medical treatment and that he knows people who lost their homes and vehicles due to gambling addiction. The president even warned that if the regulation is not effective, he will not hesitate to completely ban betting.
The Fiscal Strategy of the Lula Government
The current government’s economic team has implemented an aggressive fiscal strategy towards the sector. The Brazilian Ministry of Finance projects collecting billions of reais through taxation of the sector, funds that will be distributed among education, sports, and tourism as established by the regulations.
This week, the Secretariat of Prizes and Bets announced the creation of a virtual laboratory to combat the illegal betting market, reinforcing state control over the activity. The Workers’ Party’s campaign “BBB Taxes: billionaires, banks, and bets” proposes increasing the tax burden on the most profitable sectors of the economy.
Blocking of Illegal Platforms
As part of the regulatory tightening, the Brazilian government announced the blocking of approximately 2,000 betting pages operating without official authorization. This measure seeks to channel all betting activity towards legalized operators that comply with the fiscal and responsible gambling obligations established by law.
Prospects for 2026: Gambling as an Electoral Flag
With the presidential elections approaching, Lula has made the regulation of betting a distinctive element of his campaign. The contrast with the Bolsonaro administration, which legalized without regulating, versus his government, which regulates with a firm hand, is part of the narrative the president seeks to consolidate for his attempt at re-election for a fourth term.
The debate on online betting in Brazil transcends the merely economic or fiscal to become an issue of public health, social protection, and political strategy that will continue to mark the South American country’s agenda in the coming months.
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