Brazil’s regulated gambling sector is facing renewed political pressure after President Luiz Inácio Lula da Silva reiterated his intention to ban betting, prompting a strong response from industry stakeholders.

The Brazilian Institute of Responsible Gaming (IBJR) has warned that such a move would undermine recent regulatory progress and drive consumers toward unlicensed markets.

President renews criticism of betting sector

In recent comments, Lula suggested he would support a full ban on betting if given the opportunity, citing concerns over social harm and financial distress among households.

He also raised concerns about the influence of betting operators within political circles and linked gambling activity to rising levels of household debt, particularly impacting families.

Industry warns of black market expansion

The IBJR has strongly opposed the proposal, arguing that banning regulated betting would not eliminate demand but instead shift activity to the black market.

According to the organisation, the regulated framework introduced in 2025 provides essential safeguards, including identity verification, deposit limits and self-exclusion tools, which would be lost if the legal market were dismantled.

Data challenges narrative on financial harm

In response to claims about widespread financial damage, the IBJR cited research indicating that gambling accounts for only a small share of household expenditure, estimated between 0.2% and 0.5%.

The organisation also pointed out that stricter payment controls are already in place, including a ban on credit card and cryptocurrency deposits, aimed at reducing the risk of excessive spending.

Significant fiscal contribution at stake

The regulated betting sector has become a notable source of public revenue. In 2025, licensed operators contributed nearly BRL10 billion in taxes, with the overall tax burden expected to increase further in the coming years.

Industry representatives warn that reversing regulation would not only reduce these revenues but also weaken consumer protection and oversight.

Debate highlights future of Brazil’s market

The ongoing dispute underscores broader tensions between political concerns over social impact and the economic and regulatory benefits of a controlled market.

As Brazil continues to refine its gambling framework, the outcome of this debate will play a key role in shaping the long-term structure and stability of one of the world’s fastest-growing betting markets.

Sources: IGB