Brazil bans online gambling ahead of election

In a surprise move, Brazilian President Luiz Inácio Lula da Silva has issued a provisional executive order to ban all online gambling and sports betting nationwide.

The sudden shift marks a dramatic reversal from the government's previous efforts to tax and regulate the industry through a federal licensing framework launched in early 2025.

President Lula justifies the ban as a necessary public health intervention, citing rising levels of household debt and a correlation between gambling and mental health crises, including depression and suicide.

However, the timing has drawn intense criticism from political opponents, who label the move as a populist election strategy.

Industry leaders are equally concerned, arguing that the ban infringes on free enterprise and risks pushing bettors toward an unregulated black market.

The government now faces the challenge of securing congressional approval to make the ban permanent.