Lula Renews Push to End Online Betting as Brazil Weighs New Curbs
Brazil · Politics
His words landed a day after police raided the Pixbet group over an alleged laundering scheme that used 549 dead people’s tax IDs.
President Lula has again come out against online betting in Brazil. Saying he would end the sector if the choice were his alone.
He spoke on 14 August 2026, adding that his government is studying ways to squeeze the platforms. His words came a day after police raided one of the country’s biggest betting brands.
What Lula said about online betting
On 14 August 2026, Lula spoke in interviews with the podcasts Nao Inviabilize and As Cunhas. He said that, if it depended on his personal will, Brazil would end the bets.
“If nobody shows me a social reason for these bets to continue, we have to end them,” he added. So his stance is a personal preference, not a signed order.
A study, not a ban
Importantly, Lula did not announce a ban. Instead, he said the government is studying measures to restrict the platforms.
He named three ministries working on it: Finance, Planning and Justice. As a result, any real change would still need debate and, in most cases, Congress.
Why the president is worried
Lula frames betting as both a health problem and a money problem. He calls gambling a disease and a vice that pushes families into debt.
Meanwhile, he worries that low-income Brazilians spend scarce cash, and even social benefits, on bets. That fear has shaped his push for limits.
The Pixbet raid that framed the week
His comments came a day after a striking police operation. On 13 August 2026, the Federal Police raided the Pixbet group in an inquiry called Operation Arena.
Investigators say the group used 549 tax IDs of dead people to move money abroad. For example, funds allegedly flowed to an offshore firm in Curacao, a tax haven.
How big the betting market is
Brazil’s regulated market is large and still young. It began full operation on 1 January 2025 under the 2023 Betting Law.
In 2025, licensed operators booked about R$37 billion (US$7.1 billion) in gross gaming revenue. In addition, they paid roughly R$9.95 billion (US$1.9 billion) in taxes.
The taxes on bets
The state takes its cut in two ways. Operators pay a tax on their gross gaming revenue, set at 12% when the rules began.
Players also owe 15% income tax on net winnings. Moreover, lawmakers have floated raising the operator rate in the coming years.
Rules that already bite
The government has not sat still. Since 17 July 2026, every betting advert must carry a health-style warning.
The notice must fill at least 10% of the ad and warn, for instance, that betting can cause addiction. Firms that ignore it face heavy fines.
The ‘betting caucus’ in Congress
Lula knows the politics are hard. He openly acknowledged a ‘betting caucus’ of lawmakers tied to the industry.
Because that bloc is strong, any ban faces long odds. Still, several deputies have filed bills to prohibit or curb bets outright.
What happens next
For now, betting stays legal and taxed in Brazil. The next moves will likely be fresh limits on how platforms operate and advertise.
Lula, for his part, has said he will campaign on ending harmful bets in 2026. So the fight is set to run into the election year.
Frequently Asked Questions
Did Lula ban online betting in Brazil?
No. He said he would end it if it were up to him. But no ban has been enacted; the sector remains legal and regulated.
What did Lula propose instead of a ban?
He said the finance, planning and justice ministries are studying measures to restrict platforms and make them harder to operate.
What is the Pixbet case?
On 13 August 2026, Federal Police raided the Pixbet group over alleged money laundering. Saying it used 549 dead people’s tax IDs to move funds abroad.
How is betting taxed in Brazil?
Operators pay 12% on gross gaming revenue and players pay 15% income tax on their net winnings.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error