Lula Wants to Ban the Online Casinos He Legalised

In a nationally televised address on March 7 — the eve of International Women’s Day — Brazil’s President Lula did something remarkable. He called for the abolition of an entire industry that his own government had legalised barely two years earlier. The target: online casinos, and specifically the Jogo do Tigrinho, a slot-machine-style gambling app that has become one of the most downloaded products in the country.

“Casinos are prohibited in Brazil,” Lula said. “It makes no sense to allow the Tiger Game to enter people’s homes, putting families into debt through their phones.” He pledged to unite the executive, Congress, and the judiciary to ensure that “these digital casinos stop destroying households.”

The Law He Signed Himself

The awkward backdrop to Lula’s speech is that online casinos operate in Brazil under a law he personally signed. In December 2023, the government pushed through legislation to regulate sports betting — a bill originally drafted by Finance Minister Fernando Haddad. During its passage through Congress, a deputy expanded the text to include online casino games. The Senate tried to strip the provision out but the lower house reinstated it, and Lula signed the final version without vetoing the casino clause.

The result was an explosion. Within months, Brazil became the world’s third-largest online gambling market behind the United States and the United Kingdom. By late 2024, the Central Bank estimated Brazilians were spending between R$18 billion and R$21 billion per month on betting via the Pix instant-payment system — figures that climbed to R$20–30 billion per month by early 2025. Some 24 million people placed at least one bet during that period.

The Welfare Money That Vanished

The political tipping point came when the Central Bank revealed that five million recipients of Bolsa Família — Brazil’s flagship anti-poverty programme — had transferred R$3 billion to gambling platforms via Pix in a single month. Of those, four million were heads of households, the people who actually receive the benefit. The average bet was R$100, roughly the cost of a week’s groceries for a low-income family.

The data was devastating. It showed that 17% of all Bolsa Família beneficiaries were gambling with welfare money intended for food, rent, and school expenses. The National Trade Confederation estimated that online casinos had pushed 1.3 million Brazilians into default, draining R$1.1 billion from retail consumption. The Fiocruz public health institute warned that four million Brazilians already showed problem-gambling behaviour.

The Women’s Day Framing

Lula’s decision to deliver the gambling speech on Women’s Day was deliberate. He framed the crisis as a gender issue: most addicts are men, but women pay the price when household money disappears into phone screens. Allies inside the presidential palace told Brazilian media the speech was also part of a strategy aimed at female voters ahead of the 2026 presidential race — a constituency the government sees as critical.

What Could Actually Change

Despite the forceful rhetoric, no legislation has been introduced yet. The 78 licensed operators holding 138 brands continue to operate legally under current rules. The government has already banned welfare recipients from betting and prohibited credit-card payments, but the black market remains enormous — illegal operators capture an estimated 60% of the total market and generate roughly R$1 billion per month in gross revenue, according to industry analyses.

The right sees Lula’s reversal as proof that the government legalised gambling recklessly and is now scrambling to contain the political fallout. The left argues the real culprit is a predatory industry that was designed to exploit the poor, and that a ban is the only responsible response. Both sides have a point, which is what makes this one of the most consequential consumer-protection fights in Latin America. Brazil legalised a monster, and now its president is asking whether the cage can still be closed.

Read More from The Rio Times

• USA & Canada Intelligence Brief for Monday, April 6, 2026
• Europe Intelligence Brief for Monday, April 6, 2026
• Cuba Exile Leadership Battle Heats Up as Transition Hopes Rise