Brazil's Lula bans online betting, unveils debt relief plan as reelection race tightens
EWZ•Brazilian President Luiz Inacio Lula da Silva issued an executive order banning online betting, effective immediately but requiring congressional approval within 120 days. He also announced a 15 billion-real program to buy up to 150 billion reais of delinquent household debt at discounts of at least 90%.
1. Betting ban takes effect
Lula's executive order bans online betting operations in Brazil, less than two years after the government established a legal framework for the industry. Congress must approve the measure within 120 days for it to remain in force. Betting websites will remain available to users claiming remaining funds until October 5, and app stores and network providers must block them on October 6.
2. Industry and household impact
The Finance Ministry estimates Brazilian households spend about 60 billion reais ($11.57 billion) annually on online betting, which generates roughly 10 billion reais in tax revenue. The betting-sector association ANJL said the measure could push more than 30 million gamblers to illegal websites. Senator Flavio Bolsonaro called the ban “populist, hypocritical and politically motivated.”
3. Debt relief plan
The government will hold a November auction, spending 15 billion reais to acquire up to 150 billion reais of delinquent loans at discounts of at least 90%; the program is expected to cover about half of eligible debt. Borrowers will be able to clear overdue obligations at the discounted value. The plan targets debts overdue for two to 4.5 years, mainly credit card balances and unsecured personal loans, and covers debts of up to 10,000 reais.
