Lula Bans Online Betting and Launches Debt Relief Program

President Luiz Inácio Lula da Silva signed a provisional executive order on September 25, 2026, banning all fixed-odds sports betting and online casino games across Brazil. The measure takes immediate effect, prohibiting new deposits and requiring network providers and app stores to block betting websites by October 6. Users have until October 5 to withdraw their funds. The order must receive congressional approval within 120 days to remain law.

Lula characterized the industry as a public health crisis and a cause of record household debt, which reached 28.9 percent of income in June. He compared the industry to a "tumour" that must be removed to save the country. To address the financial fallout, the government simultaneously unveiled a 15 billion reais debt relief program designed to restructure up to 150 billion reais of delinquent household loans through a November auction.

Finance Minister Dario Durigan acknowledged the loss of approximately US$1.9 billion in annual tax revenue but argued that such gains are not justified if they harm the population. The move has drawn sharp criticism from Senator Flávio Bolsonaro, who dismissed the ban as a politically motivated electoral tool just days before the October 4 presidential election. Industry associations warned the ban would drive up to 30 million gamblers toward illegal sites and predicted that compensation claims against the state could reach R$120 billion.