Brazilian President Luiz Inácio Lula da Silva has moved to stop users of the new Novo Desenrola Brasil debt program from accessing licensed betting platforms for one year.
The restriction was announced during a Labor Day address on April 30 and comes as the government relaunches its debt renegotiation policy for households, students, retirees and small businesses.
Novo Desenrola targets high-cost household debt
The new program was signed by Lula on May 4 and will run for 90 days. It allows eligible Brazilians to renegotiate debts such as credit card balances, overdrafts, personal loans and student financing.
The program targets people earning up to five minimum wages, or R$8,105. It includes discounts of 30% to 90%, reduced interest rates and a possible use of FGTS funds to reduce debts.
Lula said those who join the program should not be able to renegotiate debt and continue losing money on betting platforms. The block will apply across licensed online betting sites for one year.
Betting revenue has become part of the policy fight
The restriction lands only days after Brazil’s Federal Revenue reported a sharp rise in tax receipts from the regulated betting market. The agency said betting and games activity generated about R$3.4 billion in the first quarter.
That figure was more than double the R$1.5 billion collected in the same period last year. The rise follows the full launch of Brazil’s regulated fixed-odds betting market, which began operating under the new federal rules on January 1, 2025.
The government is now trying to balance that revenue with political concern over betting-related debt. Lula has repeatedly linked online betting to household financial pressure, especially when money meant for bills and food is lost through mobile betting apps.
Licensed operators face a narrow restriction
The one-year block will apply to licensed platforms, which means the measure depends on regulated operators being able to identify and exclude program participants. It also puts another compliance duty on companies already working under Brazil’s new betting regime.
Industry concern will center on where excluded users go next. A restriction that only reaches licensed sites may push some bettors toward offshore operators that sit outside Brazil’s regulated market.
The government has not yet set out the full technical process for the betting-site block. The next step will be how banks, program administrators and licensed operators are told to share the data needed to enforce it.
