Brazil bans fixed-odds betting ahead of election

Brazilian President Luiz Inacio Lula da Silva signed an executive order on Friday prohibiting fixed-odds betting. The move comes slightly more than two weeks before the first round of the presidential election. Lula stated that the measure aims to limit the growing problem of household debt caused by gambling activities.

Immediate ban and legislative hurdles

The decree ends the practice of fixed-odds betting, covering its offering, intermediation, promotion, and advertising. This temporary executive order takes effect immediately but requires Congressional approval within 120 days to remain valid. Additionally, the decision prohibits new deposits into betting accounts while granting platform users until October 5 to withdraw their funds.

Proposed criminal penalties for operators

In a parallel step, Lula’s government prepared a bill proposing the creation of criminal offenses linked to fixed-odds betting, which is the most widespread form of online sports wagering. The draft legislation includes criminalizing practices such as promoting bets and using personal data to attract gamblers.

Lula compares gambling addiction to cancer

Speaking to journalists in Sao Paulo, Lula described his action as "strict, radical, and necessary." He likened the issue to cancer, adding that the tumor must be removed "or it will kill us." Earlier in the week, during his participation in the United Nations General Assembly, the Brazilian president attacked the betting industry, accusing it of "turning addiction into profit and destroying homes."