The regulated betting sector in Brazil is encountering challenges following President Luiz Inácio Lula da Silva's recent comments expressing a desire to abolish gambling. During the Desce a Letra Show podcast on September 16, Lula equated gambling addiction to the dangers of crack cocaine.
He stated, "Do you remember when crack emerged? The addicted individual would return home and sell their gas cylinder. Gambling operates similarly; people are selling what they don't possess and accumulating debt." This statement has raised concerns within the industry.
As reported by Folha de S.Paulo, the government has yet to outline specific actions or a timeline for any potential changes. Repealing the laws that legalized online gambling between 2018 and 2023 would necessitate congressional approval, although insiders anticipate a significant decision from the government.
Industry stakeholders suggest that the government might pursue changes through a decree or provisional measure. Discussions are underway regarding potential bans on betting advertisements and certain online casino games, including popular titles like "Tiger Game" and "Aviator." These games fall under regulations from the Secretariat of Prizes and Bets, which the Executive branch could potentially revise without congressional input.
Online casinos currently represent approximately 70% of the betting revenue in Brazil, highlighting the importance of this sector.
The ongoing debate follows Lula's September 1 meeting with civil society representatives, influencers, and artists advocating for a bill from the "Brazil Against Betting" movement. This proposed legislation is progressing through House committees with backing from lawmakers across various parties, including PL, PT, and PSD.
The bill aims to prohibit the "Tiger Lottery," restrict betting advertisements at sporting events and on social media, and ban "high-risk products" like online casinos and instant-result games. It would also limit sponsorships related to clubs, competitions, sports broadcasts, cultural events, and digital influencers, while allowing operators only to communicate institutionally on their platforms and via email to registered users, without any profit guarantees or enticing visuals.
The Brazilian National Association of Games and Lotteries (ANJL) has voiced concerns over the exclusion of the sector from government discussions, while the Brazilian Institute of Responsible Gaming (IBJR) has called for a thorough examination of the available data and offered to assist in the analysis. Both organizations noted that current discussions seem to conflate regulated operators with those operating outside of regulations.
Anonymous industry leaders have characterized the government's stance as politically motivated and have raised the possibility of legal action regarding concessions made under different conditions. ANJL's legal advisor, Bernardo Cavalcanti Freire, emphasized that potential compensation claims could amount to around R$ 120 billion ($23.3 billion), underscoring the necessity for a careful assessment before any restrictions are implemented.
Authorized operators argue that advertising limitations could inadvertently benefit illegal sites that do not hire Brazilian workers, pay taxes, or adhere to player protection regulations.
The 2027 budget anticipates R$ 6.69 billion ($1.30 billion) in revenue from betting fees and the Union's share, excluding corporate taxes, and also includes projected selective tax revenues.