Lula weighs a crackdown on online betting before October as Brazil debates a total ban

Brazilian President Luiz Inácio Lula da Silva is preparing what his team calls a “drastic measure” against online betting before the October elections, with a Medida Provisória (MP) looking like the most immediate option. For PSPs, acquirers, and banks, the key detail is simple: this is no longer just a regulatory conversation; the government is openly weighing actions that could hit payments, advertising, and access to betting operators at speed.

1. According to reporting by Estadão, the Palácio do Planalto is reviewing several paths to act before the vote, including a Medida Provisória (MP), which would take effect immediately and remain in force during the election month. Some in the government are even pushing for a total ban on online games.
2. On Tuesday, September 1, Lula met with civil society groups on the issue and said he believes “we have to make a more drastic decision.” On the same day, his campaign framed the government as already taking action, saying it had regulated the sector, increased enforcement, taken tens of thousands of illegal sites offline, created self-exclusion, and expanded prevention and treatment through SUS for people who lost control over gambling.
3. The government is also working with a political argument: it is citing polling that it says shows 70% of Brazilians support restricting online betting. That matters because the administration appears to be trying to turn public opinion into political cover before the election.
4. There are, however, real obstacles. The “bets caucus” in Congress and the broader inertia of the legislature are being described as the main barriers to any law-based restriction. There is also a procedural risk: interlocutors warned that an MP could expire before it is consolidated into a lasting rule.
5. A ban on betting advertising was also discussed, but the government says that about 62% of funding for Brazilian football comes from online betting. In practice, officials believe an abrupt advertising ban could stop the Campeonato Brasileiro in its tracks, which gives you a sense of how tangled payment flows, sponsorship money, and sports media have become.

Another route under discussion is taking the issue to the Supremo Tribunal Federal (STF) and asking the court to arbitrate on a ban. That option is currently on hold because of the crisis involving Justice Alexandre de Moraes, after the disclosure of message exchanges between him and Daniel Vorcaro, owner of Banco Master, shortly before the arrest of the banker.