Brazilian president Luiz Inacio Lula da Silva said he wouldn’t rule out banning online sports betting if regulation wasn’t able to cure betting “addiction.”
Lula is especially concerned by the number of low-income families spending money on gambling. His remarks follow a report by Brazil’s central bank that recipients of the Bolsa Familia program spent 3 billion reais ($550 million) in August. Bolsa Familia is Brazil’s financial aid program for poor families.
“If regulation doesn’t work, I won’t hesitate in putting an end to (betting) definitively,” Lula said, according to Reuters.
Lula made the comments on Sunday, after casting his vote in municipal elections in Sao Paulo.
Lulu called a cabinet last week to consider banning Bolsa Familia recipients from gambling. But no actions were taken at that time. Lula also acknowledges that an outright ban wouldn’t totally stop people from gambling. For instance, he noted that bans have not completely eliminated illegal cockfighting and numbers betting.
Sports betting has been legal in Brazil since 2018. It took until the end of last year, however, to put in place a regulatory framework for the industry. To legally operate in Brazil, companies now need to open offices in Brazil and associate with a local partner. More than 130 companies pre-registered for a license in April, including DraftKings and BetMGM.
Betting boom in Brazil
Brazil is an important market for the gaming industry. In fact, it is already the global leader in online betting, generating roughly R$45 billion annually, according to a report by Similarweb. Even before regulation, Brazil’s sports betting and iGaming market grew at an annual compound annual rate of 38%. And the country continues to attract investment from some of the industry’s largest operators.
Just last month, Flutter Entertainment – FanDuel’s parent company – acquired an initial 56% stake in NSX Group, Brazil’s fourth largest sports betting and gaming operator. For its stake, Flutter paid roughly $350 million and contributed its existing Betfair Brazil business. The company is now named Flutter Brazil.
Since taking steps to regulate the industry, Brazil is doing more to crack down on illegal operators. As of Oct. 1, online companies operating without government consent will be restricted. A ban on the use of credit cards for gambling in Brazil is scheduled for January 2025. But given the growing concerns about gambling addiction, a credit card ban could be enacted sooner.
