Brazilian Gaming Industry Condemns President Lula’s International Women’s Day Call for Total Online Betting Ban

President Lula’s call to ban online betting sparks outrage among licensed Brazilian operators who warn of black market growth and loss of tax revenue.

By: AXL Media

Published: Mar 10, 2026, 10:15 AM EDT

Source: The information in this article was sourced from iGB

Presidential Address Triggers Sector-Wide Outcry

In a televised address marking International Women’s Day, President Luiz Inácio Lula da Silva urged a unified front between the government, Congress, and the judiciary to ban online betting in Brazil. Describing digital casinos as a "tragedy" that disproportionately burdens women by draining family resources for food and rent, the President’s rhetoric marks a sharp pivot from his administration's successful push to regulate the sector in late 2023. The licensed market, which only went live on January 1, 2025, is now facing existential uncertainty just over a year into its legal operation.

Industry Leaders Label Comments "Disrespectful" to Investors

Ramiro Atucha, CEO of Atucha Strategic Advisory, criticized the President’s stance as "disrespectful" to the investors who have already committed to the BRL 30 million license fee and strict KYC compliance. Industry stakeholders warn that such volatility damages investor confidence in Brazilian M&A activity. Atucha emphasized that the social problems cited by the President are characteristic of the unregulated "black market," rather than the licensed operators who adhere to the national self-exclusion schemes and player protection mandates established under Lula’s own government.

The "Shadow Market" Risk and Legislative Barriers

Legal experts have pointed out a fundamental misunderstanding in the President’s proposal. Udo Seckelmann, Partner at Bichara e Motta Advogados, noted that online betting has existed in Brazil for years through offshore operators. The 2023 regulations were specifically designed to bring this "invisible" activity under federal supervision. Seckelmann argued that a ban would not eliminate gambling but would simply "push it back into the shadows," stripping the state of oversight and tax collection. Furthermore, overturning the current system would require a complex legislative process that currently lacks broad political support.