The Brazilian Institute of Responsible Gaming (IBJR) has warned against a ban on betting in Brazil after the nation’s president again called for the activity to be prohibited.
Earlier this week, Brazil President Luiz Inácio Lula da Silva said he would ban betting if the opportunity arose in an interview with ICL Notícias.
Lula hinted betting was being protected by its influence on certain politicians, stating: “If it were up to me, we would shut down the betting operations.
“Obviously, it depends on the National Congress, on discussion. I know they [betting operators] finance it. I just can’t mention names because I’m not a judge, I’m not a police officer, but everyone knows the deputies, the parties, who the senators are. Everyone knows. It’s not possible for us to continue with this rampant gambling in this country.
“If betting causes the harm we think it does, why don’t we just get rid of it?”
The IBJR issued its response on Thursday, explaining a complete ban on betting in Brazil would lead bettors into gambling via the black market and away from the player protection measures implemented after the regulated market launched on 1 January 2025.
“Closing the legal market would not eliminate societal demand, but would push everyone into the informal sector, eliminating protection mechanisms and significant revenue destined for essential public services,” the IBJR said.
“Strengthening the formal market, which operates under one of the most modern regulations in the world, is the way to strangle illegality and guarantee clear rules of integrity and protection for bettors.”
Concerns over family debt from betting in Brazil
This isn’t the first time Lula has called for betting to be banned in Brazil. He also made comments in an address to the nation for International Women’s Day in March.
“Although most addicts are men, the burden falls on women,” Lula said. “It’s the money for food, rent and children’s school that disappears on the cell phone screen.
“It makes no sense to allow gambling to enter homes, indebting families through cell phones. Let’s work together, uniting the government, Congress and the judiciary, so that these digital casinos don’t continue to indebt families and destroy homes.”
With Lula referencing family debt caused by betting in Brazil, the IBJR has now sought to clarify the matter with “concrete data”.
“A technical study by LCA Consultoria demonstrates that spending in this sector corresponds to a share of 0.2% to 0.5% of Brazilian families’ consumption,” the IBJR explained.
“Data from the National Consumer Indebtedness and Default Survey (PEIC) indicate that the main source of over-indebtedness – affecting 80.2% of families – is credit cards. To actively prevent this problem, regulated platforms (identified by the .bet.br domain) are prohibited from accepting payments via credit card or cryptocurrencies.”
The IBJR also outlined the rigorous KYC processes licensed operators must undertake to prevent underage gambling, with facial recognition mandatory under the regulations.
“The regulated environment is the only one that offers mandatory safety safeguards, such as game time limits, deposit restrictions and a self-exclusion tool,” the IBJR added.
“Regulation is, therefore, the main barrier to protecting the financial and mental health of Brazilians, ensuring a safer entertainment environment.”
Betting’s financial contribution in Brazil
The IBJR also highlighted the hefty financial contribution made by licensed operators in Brazil.
Licensees are subject to a BRL30 million licence fee, as well as additional taxes on top of the gaming tax, which will increase to 15% from 2028 onwards.
The licensed sector contributed BRL9.95 billion in tax in 2025, but with tax reforms on the way, the total burden on operators is projected to reach 42% of GGR by 2033.
The IBJR has therefore urged Lula to reconsider his calls for a complete ban on betting, saying: “Backtracking on regulation would mean suppressing vital revenues for social development and exposing Brazilians to the informal market.
“The Brazilian Institute for Responsible Gaming reiterates its commitment to transparent and technical dialogue with the executive branch and the National Congress, acting in a strictly democratic manner to consolidate a safe and responsible economic sector that actively contributes to the country’s future.”
Kyle Goldsmith
Kyle has been with Clarion since December 2023, joining from the world of sports journalism, subsequently becoming a LatAm-facing senior reporter with iGB.
