Brazil president says he would take ‘immense pleasure’ in ending betting
During a campaign event in Rio de Janeiro this week, Brazil’s President Luiz Inácio Lula da Silva once again attacked the regulated betting sector, which could be banned by the end of this week.
“If we don’t fight this, the algorithms will win,” Lula said.
Lula is expected to issue a provisional measure on Friday, with suggestions he could look to overturn the law that regulates online betting in Brazil.
Due to the difficulty of banning betting overnight, Lula is expected to issue a provisional measure, which would ban the regulated gambling sector in Brazil until the National Congress approves or rejects Lula’s decision.
According to Lula, football clubs will need to find other forms of financing, stating the measure is a government decision rather than a direct dispute with football. He added: “I will have immense pleasure in putting an end to betting.”
On Wednesday, the president met with ministers to discuss actions to be taken to restrict betting. Among those present were Dario Durigan (minister of finance), Mirian Belchior (chief of staff), Bruno Moretti (minister of planning and budget), Wellington César (minister of justice) and the president of the Central Bank, Gabriel Galípolo.
How does Lula plan to restrict betting in Brazil?
The president has not yet officially announced the measures he expects to be taken, but has instructed his team to finalise analyses of what the measure will include. There is no consensus among the economic and political teams regarding the impacts of the decision to end betting.
There are three paths that could be taken.
The mildest would be to expand restrictions on advertising by betting companies. The second option could prohibit the online casino vertical, maintaining only sports betting, but with advertising limits. The most radical decision – and the one that faces the most opposition from the economic team – would be to effectively eliminate betting altogether.
In addition to direct concerns about government finances, the economic team fears legal challenges to the measures about to be announced. For this reason, discussions within the government are being monitored by the minister of justice and other areas in his ministry.
Unlimited speeches
However, since the president is campaigning ahead of the upcoming general election, he has no limits on what he says, unlike his ministers, who must be more restrained in their statements while still in government. Lula criticised the betting sector during his speech at the opening of the UN General Assembly this week.
The same happened on Wednesday during a campaign event in Rio de Janeiro. He made it clear again that he wants to end betting and sent a message to football clubs, some of which last week published a manifesto endorsing the regulated betting sector.
“In the name of good politics, in the name of Brazilian society, we are going to put an end to this and the teams will learn to live without money laundering,” Lula said. “That’s it. It will be like this. And this will be good for the youth.”
Provisional measure expected this week
In an interview with JOTA, Brazil’s Minister of Institutional Relations José Guimarães stated the provisional measure should be released this week.
“What will be the extent of the intervention? Medium? Total? It’s in his [Lula’s] hands,” he said. “But there’s one thing the president won’t budge from: he’s going to stir up this hornet’s nest.”
According to Guimarães, the Presidential Palace and the economic team are conducting surveys on the financial and fiscal impacts of the different alternatives under discussion to restrict the betting market. The final decision, however, will rest with Lula. The minister confirmed that a total ban is among the possibilities.
The minister stated that Lula’s decision to end gambling had nothing to do with the general election.
“He’s doing it because it needs to be done,” said Guimarães. He emphasised that the concern is the impact of gambling on family income.