Brazil’s regulated betting sector is pushing back after President Luiz Inácio Lula da Silva said he supports shutting down online betting platforms. The Brazilian Institute for Responsible Gaming, known as IBJR, said closing the legal market would not end betting demand and could instead drive more users to illegal operators.
IBJR said the illegal market already accounts for about 51% of Brazil’s betting sector and moves around R$40 billion a year outside the law. The group said that makes enforcement a more urgent issue than shutting down the regulated market.
Industry says a shutdown would remove safeguards, not demand
IBJR focused its response on consumer protection. It said shutting legal operators would remove identity checks, self-exclusion tools, deposit controls and other protections that only exist in the regulated market. The group also said licensed sites using the .bet.br domain already operate under federal rules aimed at fraud prevention, anti-money laundering and responsible gambling.
Its argument is straightforward. People may not stop betting if legal platforms disappear. In IBJR’s view, many would move to unlicensed sites, which would make the illegal market even stronger.
R$40 billion estimate sharpens the policy fight
The R$40 billion figure comes from research cited by IBJR from Instituto Locomotiva and LCA Consultoria. The same estimate said illegal operators may account for 41% to 51% of Brazil’s betting market and may be costing the public sector about R$10.8 billion a year in lost revenue.
That estimate now carries more weight because Brazil is not only debating stricter rules. It is also discussing higher taxes on betting companies. Lula’s recent comments came as his government weighs stronger restrictions on the sector and a possible rise in tax pressure.
Industry groups say that mix could hurt legal operators while illegal sites keep running. In their view, making the licensed market weaker without stopping illegal betting would only deepen the gap between the two sides.
Lula’s comments add more pressure to the betting debate
Lula said this month that online betting has become a “massive tragedy” for many families and said he would support a national ban, while also acknowledging that any such move would need approval from Congress.
For now, there is no formal plan to shut the legal market. But IBJR’s warning shows how quickly the debate has shifted. The issue is no longer only how to regulate betting. It is also whether Brazil can fight illegal gambling without damaging the legal system it only recently built.
