Lula Orders Immediate Online Betting Ban and Unveils Major Household Debt-Relief Plan Ahead of Tight Election

Brazilian President Luiz Inácio Lula da Silva on Friday issued an executive order banning online betting across the country and announced a large-scale household debt-relief program, measures introduced days before the Oct. 4 first-round vote as the presidential race tightens.

The executive order takes immediate effect but must be ratified by Congress within 120 days to remain in force. The government says the ban responds to growing concern that rising gambling losses have eroded household budgets and contributed to record levels of indebtedness. Officials cite surveys indicating roughly three-quarters of Brazilians support a full ban on online betting.

"We are facing a public health issue involving online betting. It is a serious problem," Finance Minister Dario Durigan said at the announcement.

Durigan said betting companies' websites will remain available for users to withdraw remaining balances until Oct. 5. From Oct. 6, app stores and internet service providers will be required to block the sites. The decree reverses a regulatory path that began after online betting was legalized in 2018 and more explicitly regulated by legislation signed in 2023; licensed operators began nationwide service in January 2025 after meeting concession and regulatory requirements.

Right-wing Senator Flavio Bolsonaro, a leading challenger in the race and son of former President Jair Bolsonaro, called the measure "populist, hypocritical and politically motivated" at a campaign rally in Rio de Janeiro. The betting industry association ANJL warned the ban could push millions of gamblers to illegal sites and said it disrespects companies that invested to comply with the law.

Officials say households spend roughly 60 billion reais (about $11.6 billion) a year on online betting, generating an estimated 10 billion reais in tax revenue. Analysts at JPMorgan flagged several listed gambling companies with exposure to Brazil, including Evolution (about 9% of sales), Allwyn (Betano contributing roughly 6%–7% of EBITDA), Entain and Flutter.

Debt Relief Program

Alongside the betting ban, Lula unveiled a renewed household debt-relief initiative building on last year’s "Desenrola" program. The government said it will hold an auction in November to purchase and restructure delinquent household loans, committing 15 billion reais to acquire up to 150 billion reais of overdue debt at discounts of at least 90%. Officials expect the operation to cover roughly half the eligible stock of bad debt.

The program targets unsecured consumer debts—mainly credit card balances and personal loans—overdue for two to 4.5 years and will focus on balances up to 10,000 reais. Borrowers will be able to clear overdue obligations at the discounted amounts, with the full benefit of any write-down passed to consumers. Planning Minister Bruno Moretti described the plan as an improvement over previous Desenrola rounds by centralizing purchase and settlement rather than requiring individual negotiations with lenders.

The administration had signaled the measure as part of an election-year economic agenda. Exchange rate at the time of announcement: $1 = 5.1856 reais.

(Reporting by Igor Sodre and Marcela Ayres; Editing by Fernando Cardoso, Iñigo Alexander, David Gregorio and Stephen Coates)