Lula’s government rolls out six September announcements before Brazil’s October election, including a ban on fixed-odds bets

In the last 25 days of September, Brazil’s federal government made 6 announcements, averaging one every 4 days. For high-risk payment operators, the important part is not the election theater; it is the direction of travel on betting, consumer debt, subsidies, and tax treatment.

1. Fixed-odds betting is being banned in Brazil. On Friday, President Luiz Inácio Lula da Silva announced a ban on fixed-odds betting in Brazil, covering both online casinos and games tied to real-world events such as football matches. Lula’s stated view is that bets make money by exploiting addiction and contribute to household debt.
2. The government is launching a new debt-buyback program. After two earlier programs aimed at making debt renegotiation easier for consumers, the government is now moving to buy older debts from the covid-19 period in order to clear Brazilians’ credit records. The National Treasury will pay creditors at a steep discount, and the customer will later repay the federal government on more favorable terms. The program is being called Desenrola 3.0.
3. Bolsa Família was increased by 15.04%. The benefit was adjusted for inflation from March 2023, when the program was relaunched, through August. The minimum payment went from R$ 600 to R$ 691. Other program supplements also increased, including the additional amounts for families with children up to 6 years old and for women who are pregnant or breastfeeding.
4. Brazil ended the import tax on low-value international shipments. In September, the government signed into law the removal of import tax on international remittances of up to US$ 50, the so-called taxa das blusinhas. According to polls cited in the source, this charge, created under Lula’s government, was one of the main factors behind Lula’s rejection among voters.
5. Fuel subsidies were expanded. At the beginning of the month, the government increased subsidies for gasoline and diesel. For gasoline, the benefit rose from R$ 0.44 per liter to R$ 0.63 per liter. For diesel, the subsidy rose from R$ 1 to R$ 1.12. The government also exempted ethanol from PIS/Cofins. The move was justified by the rise in global oil prices and the refining crisis for the commodity.
6. Lula said the INSS queue is gone. The president announced that there is no longer a queue for INSS service. The agency has started reviewing more benefit requests, according to the source, though the text cuts off before giving further detail.

For PSPs, acquirers, and merchants exposed to Brazil’s high-risk verticals, the betting announcement is the one to watch. The rest of the package shows the government trying to address household debt, cost-of-living pressure, and politically sensitive fees at the same time.