Brazil's Lula bans online betting operations as reelection race tightens

On September 25, Brazil's President Luiz Inácio Lula da Silva banned online betting operations across the country in an effort to curb rising household debt and gambling addiction. This move comes just weeks before the October 4 first round of presidential elections, where he is facing a tight race against right-wing Senator Flavio Bolsonaro. The ban immediately halts new deposits into betting accounts and gives users until October 5 to withdraw their funds; however, it needs approval from Congress within 120 days to remain in effect permanently.

The decision was driven by public health concerns as nearly three-quarters of Brazilians support a complete ban on online betting. Lula’s administration cited the negative impact of gambling on families’ finances and the lack of regulation since its legalization in 2018 under former President Michel Temer's administration, which worsened under Bolsonaro. The industry was expected to contribute around 5% of Entain's total online net gaming revenues for this year but now faces a significant downturn due to the ban.