IBJR Responds to Lula’s Recent Call for Banning Betting in Brazil

(AsiaGameHub) –   The Brazilian Institute of Responsible Gaming (IBJR) has cautioned against a ban on betting in Brazil after the nation’s president renewed his call for the activity to be prohibited.

Earlier this week, Brazilian President Luiz Inácio Lula da Silva stated during an interview with ICL Notícias that he would move to ban betting if given the opportunity.

Lula hinted that betting was being protected by its influence over certain politicians, noting: “If it were up to me, we would shut down the betting operations.

“Obviously, this depends on the National Congress and the ongoing debate. I know that betting operators fund political efforts, but I can’t name names since I’m neither a judge nor a police officer. Still, everyone knows which deputies, parties, and senators are involved. Everybody is aware of this. We cannot keep allowing this widespread gambling to continue in this country.

“If betting inflicts the harms we believe it does, why don’t we simply eliminate it entirely?”

The IBJR released its response on Thursday, explaining that a full ban on betting in Brazil would push bettors to use unregulated black market gambling platforms instead of the player protection safeguards put in place after the regulated market launched on January 1, 2025.

“Shuttering the legal betting market would not erase public demand for the activity, but instead would drive all users into the informal economy, eliminating consumer protection measures and substantial revenue earmarked for critical public services,” the IBJR stated.

“Bolstering the formal betting market, which operates under one of the most modern regulatory frameworks worldwide, is the best way to stamp out illegal activity and guarantee clear standards of fairness and protection for bettors.”

Concerns over family debt from betting in Brazil

This is not the first time Lula has called for a betting ban in Brazil; he also made similar remarks during a national address for International Women’s Day in March.

“While the majority of people with gambling addictions are men, the burden falls on women,” Lula said. “It’s money meant for food, rent, and their children’s school tuition that vanishes through mobile phone screens.”

“It makes no sense to allow gambling into people’s homes, pushing families into debt via mobile devices. Let us work together, uniting the government, Congress, and the judiciary, so that these digital gambling platforms stop pushing families into debt and destroying households.”

As Lula cited family debt linked to betting in Brazil, the IBJR has now sought to clarify the issue using “concrete data”.

“A technical study conducted by LCA Consultoria shows that spending on this sector makes up between 0.2% and 0.5% of Brazilian households’ total consumption,” the IBJR explained.

“Data from the National Consumer Indebtedness and Default Survey (PEIC) indicates that the primary cause of household over-indebtedness — which impacts 80.2% of families — is credit card use. To proactively address this issue, regulated betting platforms (identified by the .bet.br domain) are barred from accepting payments via credit cards or cryptocurrencies.”

The IBJR also detailed the strict know-your-customer (KYC) procedures that licensed operators are required to follow to prevent underage gambling, with facial recognition mandated under the regulatory rules.

“The regulated betting environment is the only framework that provides mandatory consumer protection measures, such as playtime limits, deposit caps, and a self-exclusion tool,” the IBJR added.

“As such, regulation is the primary safeguard for protecting Brazilians’ financial and mental well-being, while also ensuring a safer entertainment space.”

Betting’s financial contribution in Brazil

The IBJR also highlighted the substantial financial contributions made by licensed betting operators in Brazil.

Licensed operators are subject to a BRL30 million licensing fee, plus additional taxes on top of the gaming tax, which will rise to 15% starting in 2028.

The regulated betting sector contributed BRL9.95 billion in tax revenue in 2025, but with upcoming tax reforms, the total tax burden on operators is projected to reach 42% of gross gaming revenue (GGR) by 2033.

The IBJR has therefore urged Lula to reconsider his calls for a complete ban on betting, saying: “Rolling back regulatory progress would mean losing out on critical revenue for social development and exposing Brazilians to the unregulated informal market.

“The Brazilian Institute for Responsible Gaming reaffirms its dedication to transparent, technical dialogue with the executive branch and the National Congress, acting in a strictly democratic manner to build a safe, responsible economic sector that actively contributes to the country’s future.”