Key Takeaways
- During an International Women’s Day speech, President Lula advocated for prohibiting online gambling
- Gambling sector executives labeled the statements “disrespectful” and cautioned about illegal market expansion
- The Lula administration established online betting regulations in December 2023, with operations commencing January 2025
- Legal analysts indicate prohibition would necessitate fresh legislative action and widespread political backing
- Women in Gaming industry organization condemned both the timing and content of Lula’s statements
Brazil’s Head of State Luiz Inácio Lula da Silva has triggered significant opposition from the authorized gambling sector following his appeal to prohibit online wagering nationwide.
The president’s statements came during a broadcast speech on Sunday, March 8, commemorating International Women’s Day. Lula characterized gambling dependency as a “tragedy” and emphasized that the economic impact disproportionately affects households, especially women.
“It’s the funds meant for groceries, housing payments and children’s education that vanish through mobile phone screens,” Lula stated.
He urged cooperation among government branches, the legislature, and judicial system to halt what he termed “digital casinos” from devastating families.
The statements generated swift condemnation from sector representatives and legal professionals, who highlighted that Lula’s own administration was responsible for establishing the regulatory framework for online wagering.
Brazil’s internet gambling sector received regulatory approval through Law No. 14,790/2023, authorized during Lula’s term in December 2023. Licensed operations commenced on January 1, 2025, implementing safeguards including consumer protections and a nationwide exclusion program.
Ramiro Atucha, founder and CEO of Atucha Strategic Advisory, informed iGB that the statements showed “disrespect” toward investors and risked undermining market confidence.
He cautioned that prohibition would merely drive consumers toward unlicensed platforms. “Every issue they’re identifying relates to unregulated platforms, not licensed ones,” Atucha explained.
Sector Leaders Highlight Underground Market Dangers
Udo Seckelmann, Partner for Gambling at Bichara e Motta Advogados, characterized Lula’s position as demonstrating a “misunderstanding” of industry operations.
He emphasized that international and unlicensed platforms had operated in Brazil for years preceding regulatory implementation. “Prohibition wouldn’t eliminate the sector — it would merely drive it underground again,” Seckelmann explained.
Both Atucha and Seckelmann expressed skepticism about prohibition becoming reality. Seckelmann noted that dismantling the existing framework would demand fresh legislative proceedings and substantial political consensus, “which appears improbable at present.”
Atucha emphasized that abandoning tax revenue and confronting legal challenges would establish a harmful precedent for any enterprise contemplating Brazilian investment.
Women’s Gaming Association Questions Appropriateness
The Association of Women in the Gaming Industry (AMIG) expressed “surprise and concern” regarding the statements, criticizing Lula’s apparent dismissal of female professionals in the gambling sector.
AMIG stated that leveraging International Women’s Day to propose measures potentially damaging to women employed in the industry was “unacceptable under any interpretation.”
This marks another instance of Lula’s government challenging the sector it established. Finance Minister Fernando Haddad declared in July of the previous year his willingness to support gambling prohibition if legislation emerged.
The administration additionally pursued raising the operator tax burden from 12% to 18% for budget deficit reduction, though this initiative was unsuccessful. A more modest incremental tax adjustment received approval in late 2025, establishing rates at 15% beginning in 2028.
The gambling regulatory authority, the Secretariat of Prizes and Bets, operates under Haddad’s Ministry of Finance.
