Lula steps up criticism of Brazil’s betting sector as Congress debate and tax revenue collide

Brazil’s President Luiz Inácio Lula da Silva has intensified his attacks on online betting, calling gambling a “scourge of lies” and framing sports betting as a financial trap for workers. For PSPs and acquiring partners in Brazil, the point is not just rhetoric: the political line is now tied to regulation, tax revenue, and the question of whether the industry keeps its current legal footing.

1. In speeches and interviews, Lula has repeatedly linked online betting to indebtedness, weaker labour conditions, and harm to young people and low-income workers. He said that, if it were up to him, he would “put an end to them,” and added in one podcast interview: “If no one can show me a social justification for these betting platforms to continue, we have to put an end to them.”
2. Lula has also said he is aware of the “betting lobby” in Congress, which matters because it makes any outright move against the sector harder to pass. In his words: “I know there’s a gambling lobby in Congress. But it is a fight we will have to take on, because society cannot be destabilised by something we can control.”
3. The fiscal angle is harder to ignore. Government coffers were boosted by gambling to the tune of nearly BRL7.3 billion in the first half of 2026, while Brazil collected nearly BRL10 billion from the activity in 2025, excluding concession and regulatory fees. If the activity were curtailed, that revenue stream would disappear and the budget would take another hit.
4. The Ministry of Finance has also provided a data point that will keep showing up in the policy debate: according to Finance Minister Dario Durigan, more than five million Brazilians are already barred from betting. That figure is now part of the government’s argument for tighter intervention.
5. Lula has folded the betting issue into a broader campaign message about formal employment and social protection. He said the government is working with the ministries of finance, planning and justice to evaluate measures that would mitigate the effects of betting on society. For operators, the practical takeaway is simple: this is no longer a niche regulatory conversation, but a live political file inside the executive branch.