Brazil bans online betting ahead of presidential election

Brazilian President Luiz Inácio Lula da Silva announced a ban on online gambling just days before the country's presidential election, in which he is seeking a fourth term in office.

The left-wing leader, who is facing Flávio Bolsonaro, the son of jailed former President Jair Bolsonaro, signed a provisional order on Friday prohibiting sports betting and online casino operations.

Online gambling was legalised in Brazil in 2018 but has since faced growing criticism over its impact on household finances and gambling addiction.

The decision has also triggered concerns within Brazilian football, with clubs warning that the ban could result in significant financial losses if betting companies withdraw their sponsorship deals.

Lula described the online gambling industry as a "cancer", arguing that strong action was needed to prevent gambling addiction from causing further harm to Brazilian families.

"Either we remove the tumour, or it kills us," the president said.

The announcement came just over a week before the first round of Brazil's presidential election, with recent polls showing Lula in a closely contested race with his younger rival.

Lula also signed a separate bill establishing criminal offences linked to fixed-odds betting, which is one of the most common forms of online sports betting.

Under the new measures, bettors and betting companies will have until October 5 to withdraw existing funds from online betting accounts, while new deposits have been prohibited.

However, the measures must receive approval from Congress within 120 days to remain in force.

Lula acknowledged that online betting was permitted under the administration of former President Michel Temer but argued that the industry expanded without sufficient regulation during Bolsonaro's administration.

In a statement on X, the Brazilian president said there had been "no restrictions" in place to adequately prevent children and teenagers from accessing online betting platforms.

"We won't allow betting companies to profit at the expense of Brazilian families' income and lives," Lula said.

The president also spoke about families he had encountered who had reportedly sold household possessions because of gambling addiction.

Earlier this week, during the United Nations General Assembly, Lula accused the betting industry of "transforming addiction into profit".

Flávio Bolsonaro, one of Lula's political opponents, has criticised the government's decision to ban online gambling.

According to Reuters, Bolsonaro described the crackdown as "populist, hypocritical and politically motivated" during a campaign rally in Rio de Janeiro on Friday.

The timing of the decision has also attracted attention because it comes shortly before the presidential election, with Lula seeking another term as Brazil's president.

The ban could have a significant impact on Brazilian football, with betting companies having become major sponsors of clubs since online gambling was legalised.

Grêmio, one of Brazil's traditional "big twelve" clubs, said ahead of Lula's announcement that sports betting companies had become "one of the main sources of revenue for sports" since betting was legalised.

The potential loss of sponsorship revenue could therefore create financial challenges for Brazilian clubs and other sports organisations that have developed commercial partnerships with betting companies.