The president of Brazil, Luiz Inácio Lula da Silva, has decreed this Friday the prohibition of sports betting and online games throughout the country, describing this business as a "cancer" that ruins the economy of households and deteriorates the mental health of the citizenry.
With only nine days left until the general elections, the new regulation immediately prevents new deposits or bets from being accepted on the platforms that operated in Brazil. The Executive has also established a timeline that mandates the definitive closure of the websites and applications by October 6.
"I have taken a necessary, tough, and drastic measure. This is like cancer: either we remove the tumor, or it will kill us," exemplified the Brazilian leader on his social media after signing the regulation.
The legal text has already been sent to Congress, where it will have to be submitted to a vote in the Chamber of Deputies and in the Senate within a maximum period of 120 days to acquire permanent status. Lula has also equated the effects of gambling addiction to crack consumption and emphasized that the State has the responsibility to protect the most vulnerable groups.
"This is no joke. It is something very serious. We are not going to allow betting companies to enrich themselves at the expense of the income and lives of Brazilian families," he highlighted.
Schedule for the refund of money to users
The decree establishes that people who bet will have until 11:59 PM (local time) on October 5 to voluntarily withdraw the balances they have on the platforms. Once that deadline has passed, the pages will cease to function and the betting houses must send the information about the pending funds to the corresponding financial entities between October 7 and 8.
"No more money can be deposited in the country's betting platforms. The platforms will remain available for bettors to withdraw the remaining balance until 11:59 PM on October 5," informed the Minister of Finance, Dario Durigan.
The final payments will be made between October 9 and 14 directly through the banking system, using each user's tax number to identify the beneficiaries. If technical problems or any type of incident occur, a public agency will take over the mediation of the payments starting October 14.
To ensure that the regulations are complied with, the Government has announced a reinforcement of the resources of the Ministry of Justice and the Federal Police. The authorities will be responsible for pursuing clandestine operations, blocking bank accounts linked to illegal gambling mediation, and integrating financial intelligence systems with the aim of shutting down unauthorized domains.
The sanctioning regime for companies that disobey the law includes everything from simple warnings to fines that can reach up to 2 billion reais (about 330 million euros).
Response to the pressures from the sports betting sector
In response to the complaints from numerous Brazilian football clubs sponsored by betting houses —contracts that account for between 6% and 7% of their budgets—, Lula has rejected the criticisms by recalling the historical successes of Brazilian football prior to the entry of this business into the sport.
"The Brazilian national team won five World Cups before these companies existed. What is unacceptable is for a team to intend to pay its debts with money disbursed by its own fans," stated the president, who noted that he made the decision after consulting with his economic team, civil organizations, and victims affected by debt or suicide due to gambling.
Socioeconomic and health impact of online gambling
The prohibition is supported by the legal framework approved in 2018 and its regulatory development from December 2023, after confirming the serious damage caused both to the domestic economy and the public health system.
Official data, released by the Brazilian state agency, shows the magnitude of the problem. According to the Ministry of Finance, gambling drained around 62.5 billion reais (about 10.3 billion euros) from household budgets over the last year. Additionally, one in five primary and secondary students admits to having gambled online, a proportion that rises to almost half among older students.
Added to this are the costs borne by the State: the Ministry of Health estimates an annual expenditure of 38.8 billion reais (6.4 billion euros) on treatments for addiction and depression, on prevention and suicide care services, on losses in labor productivity, and on legal proceedings arising from family debts.