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Brazilian football clubs are raising alarms about a potential “fatal blow” to the national sport as online gambling concerns intensify globally.
With fewer than two weeks remaining before Brazil’s pivotal presidential elections on October 4, President Luiz Inácio Lula da Silva is focusing on one of the country’s swiftly expanding sectors: online gambling. As worries about the detrimental effects of this industry on financially vulnerable families mount, Lula is contemplating a comprehensive ban on online casinos.
“Are we going to remain indifferent while society drowns in debt?” Lula questioned. “Are we going to stand by as families are driven to despair – because this is an illness? People lose their minds; they think about suicide or abandoning their homes. We are about to take serious action.”
Since legalizing fixed-odds sports betting in 2018, Brazil has faced a significant gambling crisis similar to that of the US. What began as a burgeoning market has rapidly escalated, positioning Brazil as the fifth-largest betting market globally. As reported by the Irish Independent, the rapid expansion of this sector has come with severe consequences:
By 2024, online gambling losses had pushed approximately 1.8 million Brazilians into debt. The impact has been felt most acutely among the nation’s most vulnerable households: during one month last year, hundreds of millions of dollars from Bolsa Família, Brazil’s primary welfare program, were funneled into betting platforms. Additionally, demand for gambling addiction treatment in the public health system surged by 140% over five years.
Since January 2023, Brazil’s online gambling sector has increased by nearly 500%, with a steady rise in the number of individuals placing bets. In 2025, the country saw an average of about 9.25 million bettors monthly, even reaching over 10.8 million during peak football events such as October.
Lula has been striving to address this issue, evidenced by his signing of a decree that empowers the government to freeze the funds of illegal online gambling operations. His administration also imposed strict advertising regulations on online gambling companies, mandating explicit warnings about addiction risks and potential financial losses on all promotions.
These concerns are not without merit. In 2025, roughly $68 billion was wagered through Pix, Brazil’s digital payment system, just one year post-legalization of online gambling, according to Agência Pública. Out of that total, approximately $12 billion was lost, equating to 0.68% of Brazilian families’ gross national disposable income.
Many of these affected families belong to Brazil’s low-income and working-class sectors—key voter groups for Lula. Speaking to the public on Sunday, he expressed his intention to completely eliminate online betting companies, although he recognizes that changes depend on congressional approval, which is uncertain. In the meantime, Brazil’s Finance Minister Dario Durigan maintains that no definitive government decision has yet been made.
Lula is also planning two additional initiatives: a full ban on online casino activities and a campaign to engage with Brazilians affected by gambling problems.
If Lula secures victory in the upcoming election, Brazil could set a precedent as the first top-10 global economy to attempt addressing the damage caused by legalized online gambling. Interestingly, Lula’s rival, Flavio Bolsonaro, has not opposed Lula on this issue, implying substantial public support for the proposed ban.
For those following, Lula appears to have a competitive chance in the election as polling data has recently tightened. A controversy involving Alexandre de Moraes, the influential judge who oversaw the coup trial against former president Jair Bolsonaro, has significantly impacted Lula’s campaign. As regular readers of NC will know, candidates endorsed by Trump and aligned with pro-Israel stances have seen remarkable electoral success across Latin America in the past year.
Brazil’s presidential election is a month away (Oct 4).
Polls all year have shown Lula with a modest lead, but they have tightened. One major tracking poll shows Flavio Bolsonaro narrowly leading in a runoff against Lula. https://t.co/Rl0t4OLbrp pic.twitter.com/DKVWZ3EStY
— Glenn Greenwald (@ggreenwald) September 3, 2026
While Lula’s proposed gambling ban may not encompass sports betting and sponsorships linked to sports organizations, it has the potential to deeply impact these sectors.
Typically, both sports betting and online casino games are managed by the same entities, with online casino games constituting about 75% of those companies’ revenues. Therefore, a significant decline in that segment could result in reduced funds for sponsorships and advertisements. According to a Reuters article:
The Brazilian government is reportedly drafting an executive order to ban operations of online casinos in the country, despite concerns over potential tax revenue losses and legal challenges from licensed companies operating in the nation, as confirmed by sources within the presidential office speaking anonymously.
Leftist President Luiz Inacio Lula da Silva, who has consistently indicated a desire to regulate online gambling, is expected to finalize the order before the initial round of elections on October 4.
Officials acknowledge that prohibiting online casinos while maintaining sports betting could drastically reduce operators’ revenues, thereby impacting both sponsorship spending in sports and government tax income.
In response to these potential changes, Brazil’s leading football clubs have issued a unified statement cautioning that “making the current model unviable” may promote illicit platforms that evade taxes and regulations. This could deal a “fatal blow” to Brazilian football, and potentially lead to insolvency for some clubs, they warned.
Betting sponsorship has become the primary revenue stream for Brazilian football, generating $200 million in 2026. This funding supports smaller clubs, lower divisions, and niche competitions, as reported by One Football. Such finances are crucial for administrative support, training facilities, social initiatives, women’s football, and youth programs—areas that typically face cuts when revenue decreases.
Essentially, Brazilian football clubs now find themselves financially dependent on sponsorship fees from online betting companies, much like national and regional governments rely increasingly on the tax contributions from this industry. However, Lula warns that much of this financial gain stems from the suffering of devoted football fans.
“São Paulo was world champion three times without sports betting. Santos, twice. Grêmio, Flamengo, and Internacional also claimed titles. My Corinthians won twice as well. Our national team clinched five world titles even before these platforms emerged. The belief that eliminating sports betting means the end of Brazilian football is absurd.
“Football teams cannot expect the less privileged, who already spend to watch the game, to substantially contribute more—pouring their income into gambling to satisfy the teams’ needs. No, no, no. Prepare yourselves, because I am ready to fight against this business.”
While the majority of sports gamblers are men, Lula is appealing directly to women, as evidenced by a campaign video from March with English subtitles. This strategy is crucial: wives and partners of gamblers typically face the harsh consequences of financial ruin, including depleted savings, hidden debts, and compromised credit ratings.
🚨🇧🇷 BREAKING — Lula:
Brazil Will Ban Online Gambling. pic.twitter.com/fiyQBP1gbV
— Pamphlets (@PamphletsY) March 8, 2026
The rapid expansion of sports gambling has diverted funds from essential consumer expenditures and household bills. Research by the National Confederation of Store Managers indicates that 46% of gamblers have reduced spending on clothing, dining, and travel to make room for their gambling costs. Alarmingly, 15% have even ceased paying their bills.
This trend mirrors the situation in the US. A recent study from the New York Fed revealed that sports betting correlates with increasing credit delinquencies and declining credit scores across more than 30 US states where it is legal. Furthermore, a UCLA study earlier this year found a near 25% rise in bankruptcies and credit card delinquencies in states with legalized online gambling.
In Brazil, even the education sector has felt the effects. A study by Educa Insights shows that around 35% of prospective students considering enrollment in 2024 chose not to pursue their degrees after spending disposable income on online gambling and virtual casinos.
The ease of access to online gambling significantly raises its risks. Users can place bets on sporting events or engage in games like virtual roulette or poker without any significant barriers, thanks to smartphones that provide constant access to virtual casinos, open 24/7. They also willingly accept credit—until financial institutions impose restrictions.
Beyond economic repercussions, gambling addiction can lead to emotional distress, including depression and chronic stress for partners and children, resulting in relationship breakdowns. It often coexists with domestic violence and has one of the highest rates of suicidal behavior among addiction disorders.
As Geaux Gabrielle, founder of the Thurman Perry Foundation, observes in a tweet, process addictions such as gambling can be even more challenging to treat than substance abuse: “they take everyone involved with the addict down with them.”
Gambling is demonic, and I can’t emphasize that enough. It surpasses drug addiction, and I say this as a public health professional. Process addictions are INFINITELY more difficult to treat, especially those as socially acceptable as gambling.
They bring down everyone nearby… https://t.co/EtC3n0BlGh
— g. (@GeauxGabrielle) September 21, 2026
Brazilian psychologist Juliana Bizeto compares gambling to crack cocaine:
“If gambling were a drug, it would be akin to crack. Its addictive power exceeds even that of cocaine. The shorter the time between bet and outcome, the higher the risk of compulsion. Adding to the issue is that many individuals gamble alone, lacking social accountability, which exacerbates the damage.”
While Lula’s administration is now seeking to rectify some of the online gambling issues it previously enabled, it’s essential to note that it was his own government that initially deregulated the industry in 2024. As Infobae highlights, more meetings were held with online betting firms during the drafting of regulations than with public health groups, signaling a troubling priority imbalance:
According to Folha de São Paulo, the government held just five meetings with health-focused organizations while having 251 meetings with online betting companies when formulating regulations.
Rodrigo Machado, a psychiatrist from the Impulse Disorders Program at the Hospital das Clínicas, cautions that the burgeoning online gambling market could wreak havoc on public health in Brazil.
“We acknowledge that this new measure may yield economic advantages. However, we need to be equipped and organized, with a comprehensive plan to provide healthcare for those affected and train professionals capable of managing such patients,” he explained.
He emphasized that a significant challenge is the lack of national training resources, suggesting that local healthcare facilities need improved preparation to address gambling addiction effectively.
Another critical concern raised by experts is that unregulated online gambling could bolster organized crime in Brazil by simplifying money laundering processes. Recent warnings from the Financial Action Task Force, a global financial crime watchdog based in Paris, confirm that online gaming and gambling platforms are increasingly exploited for money laundering and terrorist financing.
Ironically, one of the primary reasons for legalizing and regulating online gambling was the anticipated enhancement of tax revenues. Nevertheless, it has inadvertently created more avenues for tax evasion and money laundering. Furthermore, the UN Office on Drugs and Crime notes the increasingly blurred lines between online gaming and online gambling:
Gaming is morphing into gambling.
Criminals are making online gambling resemble online gaming to attract younger audiences.
Features such as mobile access, addictive design elements, and monetary stakes are putting more youths at risk. https://t.co/1gCDsdZlOF pic.twitter.com/tf3fDV2tEf
— UN Office on Drugs & Crime (@UNODC) September 17, 2026
