Is Lula drifting further away from Brazil’s gambling sector?

The latest move by Brazil’s President Lula da Silva could signal further rifts between the ruling Workers Party (PT) and the gambling sector.

As reported by SBC Noticias Brasil, the President hosted a meeting at the Planalto Palace on Monday to discuss how the regulated gambling regime has impacted families’ budget since it was enforced by Lula himself at the start of 2025.

While various representatives of civil societies, businesses, religious, health, and consumer protection institutions were present, it makes a striking impression that none of the organisations that speak on behalf of the regulated sector were even invited.

SBC Noticias Brasil reported that neither the National Association of Games and Lotteries (ANJL) nor the Brazilian Institute of Responsible Gambling (IBJR) made it to the meeting, nor was – surprisingly – the Secretariat of Prizes and Bets (SPA), which is the regulatory body of the Ministry of Finance responsible for gambling oversight.

Now, it is of course possible that Lula wants to hear each point independently, but this means that a meeting with gambling stakeholders must ensue very soon, prior to the national elections in October.

Allow me to disagree, Mr President

“I think we have to make the most drastic decision,” Lula reportedly said at the meeting. Only time will tell what this decision entails, but the President’s position is more than clear.

He’s publicly claimed that the rising debt levels throughout Brazil are directly linked to gambling, in particular online casino, leaving online betting somewhat out of the spotlight – at least for now.

However, Brazil’s top financial institution has clashed with Lula’s view. Just recently, Gabriel Galípolo, President of the country’s Central Bank, came out with a statement disputing the President’s claims, saying that debt has instead been climbing due to an over-reliance on credit cards.

The scale is on the table

What would be the next course of action by Lula’s cabinet remains to be seen. It is entirely possible that it attempts to cut the Gambling Bill in half, dividing it into online betting and online gaming to exercise control over each one better, as both are intertwined under the current legislature.

Whatever happens, one thing is certain – the electoral clock is ticking. There will be efforts made to appease both voters and investors, and sometimes you need to tip the scale in order to find the right balance.