The Brazilian government announced on Friday (Sep. 25) a provisional measure prohibiting the operation, offering, brokering, and advertising of online betting and gaming platforms in Brazil, commonly known as “bets.”

As of the measure’s publication, platforms are barred from accepting new bets. It establishes a transition period for authorized companies to wind down their operations.

Notícias relacionadas:

• Brazilian families lost USD 12 billion to online gambling in 2025.
• Online gambling shrinks Brazil’s consumption and economic activity.
• Brazil expands telemedicine care for gambling addiction.

Bettors will have until 11:59 p.m. on October 5 to voluntarily withdraw the funds available on the platforms. Those who do not withdraw their funds during this period will have their remaining balances refunded through the banks that process payments for the betting companies between October 9 and 14.

Betting websites and apps must be taken offline starting October 6. On October 7 and 8, the companies must provide banks with the amounts held in bettors’ accounts, linked to their respective taxpayer identification number. Financial institutions will issue full refunds of the balances.

If any issues arise with the refunds, Caixa Econômica Federal may facilitate payments to bettors starting October 14.

Enforcement

The Brazilian government plans to step up enforcement against illegal platforms and investigations into financial transactions related to gambling. The strategy includes identifying and taking down illegal websites, freezing bank accounts improperly used for gambling, and sharing information among government agencies.

The Ministry of Justice and Public Security and the Federal Police will receive additional resources to support enforcement efforts.

After signing the provisional measure banning betting operations in the country, President Luiz Inácio Lula da Silva said online betting sites are a “cancer” that must be eliminated.

“I took a tough and drastic measure that was necessary. This is like a cancer. Either we remove the tumor, or this tumor will kill us,” he stated.

Lula also compared online gambling addiction to crack cocaine use, noting that families are being destroyed and people are taking on unpayable debts because of the condition, also known as pathological gambling.

The president said he decided to ban online gambling in Brazil after consulting with his economic team, civil society organizations, and citizens. He pointed out he had spoken with businesspeople, homemakers, and even staff members at the Alvorada presidential palace, the president’s official residence, as well as with a woman who had attempted suicide three times and another whose son died by suicide after accumulating gambling debts.

“We won’t allow you to be exploited by credit card companies or betting sites and spend money meant for milk, your child’s bread, meals, and the things your wife needs at home. We’re trying to free the poorest people in this country from killing themselves over the prospect of winning,” Lula declared.

Soccer

Regarding complaints from soccer clubs sponsored by betting companies, Lula emphasized that Brazilian teams have won world championships without betting sponsorship, and that the Brazilian national team won the World Cup five times before betting companies entered the Brazilian market.

The president added he had been informed that betting sponsorship of soccer clubs accounts for between 6 percent and 7 percent of a team’s budget.

“What’s unacceptable is for a team not to realize that its fans already support the club, go to the stadium, and buy jerseys for their wives and children. Not only does the poor bettor contribute everything he has, but does the team also want to pay off its debts with the fans’ hard-earned money?” he added.

Impacts

Studies have shown the negative effects of this type of betting on household budgets and bettors’ mental health.

Gambling caused a BRL 62.5 billion shortfall in household budgets in 2025 alone, according to the National Committee of Finance Secretaries (Comsefaz). One in five students (20.4%) in the final years of elementary and high school said they had placed online bets. This proportion rises to nearly half (49.7%) among students in the 12th grade.

According to the Ministry of Health, the harms associated with gambling generate a social cost of BRL 38.8 billion per year. The estimate includes BRL 3 billion for the medical treatment of depression, BRL 10.4 billion for the loss of quality of life associated with depression, BRL 17 billion related to additional deaths from suicide, and BRL 30.6 billion in health-related costs.

In addition, the government estimates that BRL 8.2 billion is associated with homelessness, unemployment insurance payments, and incarceration.

Mental health professionals have been calling for urgent action to address the online gambling market. According to them, people with gambling addictions may exhibit signs such as social withdrawal, increased alcohol consumption, or significant changes in behavior.

Gambling addiction can develop through physiological processes in the brain and body. When a person gambles, the brain may release dopamine in anticipation of a win, which can act as a form of reward. This process can influence brain regions involved in decision-making and behavior. The brain may then become conditioned by this intermittent reinforcement.

The financial reward, however, does not correspond proportionally to the chemical reward.

“A huge relief.” That’s how Kaio*, 42, described his reaction upon hearing the news last Friday (Sep. 25) that online gambling companies, or “bets,” had been banned in Brazil. He says he is trying to rebuild his life after losing his car, his home, and his job because of gambling debts.

Today, Kaio lives alone in a dormitory in a small town in Goiás state. There, he sleeps on the floor every night. Fearing for his safety because of debts he incurred with loan sharks, he chose to distance himself from his family and stay away. He acknowledges that, over the past six years, his gambling addiction has turned his life upside down.

Notícias relacionadas:

• Online gambling shrinks Brazil’s consumption and economic activity.
• Brazilian families lost USD 12 billion to online gambling in 2025.
• Brazil expands telemedicine care for gambling addiction.

For this reason, he decided to seek help at a Psychosocial Care Center (CAPS), where he began attending therapy groups and seeing doctors earlier this year. He takes three medications a day.

Agência Brasil has been reporting on the issue since the first warnings about rising gambling addiction and its impact on household finances.

Regulation

Although online betting was authorized in 2018, it was not regulated until December 2023. In other words, betting platforms operated with virtually no regulatory framework for at least five years.

It was only after regulations were introduced that rules were established requiring operators to display messages discouraging gambling and warning of its harmful effects.

Vulnerabilities

Psychiatrist Katia Branco, supervisor of the Pro-Amiti Group, which treats and studies impulse control disorders at Hospital das Clínicas in São Paulo, explains that vulnerable individuals are the group most susceptible to gambling addiction and have been exposed to misinformation and misleading advertising from all sides.

According to her, people have been bombarded with ads that foster the false notion that gambling can serve as a source of supplemental income. “These are people who want quick returns and are led to believe they can achieve this through betting. This has become truly dangerous.”

Billions in losses

Brazilian households lost BRL 62.5 billion to betting from October 2024 to March 2026 - the difference between the amount wagered and the winnings paid out. This amounts to an average loss of BRL 4.7 billion per month over the period.

Unenforced regulations

The law regulating betting required, for example, that companies block access to users identified as compulsive gamblers. But according to attorney Júlio Leone, this never happened. On the contrary, companies sent countless bonuses and advertisements to bettors. “That’s where bettors loses all their money,” the attorney told Agência Brasil in August.

Kaio confirms that this was exactly what was happening. “My cellphone wouldn’t stop receiving messages.”

People of all ages fell victim to violations by the platforms, including teenagers.

Survey data indicate that 20.4 percent of students in the final years of elementary school and high school said they had placed online bets in the past year. The survey was conducted at the request of the Joint Parliamentary Front for Education by Equidade.info, an initiative that produces data for research. It covered 1,912 students from 191 schools across the country.

Among the most striking findings was that some students had started gambling as early as age 11. At least 9.5 percent of students in this age group reported having gambled before.

Psychologist Mariana Kehl, a member of the Brazilian Psychological Society, explains that young people are more vulnerable to such temptations because their brains are still developing.

Experts explain that the brain regions linked to pleasure and dopamine are highly active during adolescence, while the areas responsible for impulse control and risk assessment do not fully mature until a person’s early 20s.

“Adolescents intensely experience the pleasure of winning a bet, but they do not yet have the capacity to control the impulse to place the next bet,” she says.

Suicide risks

Health care professionals have observed that gamblers of all ages exhibit signs of hopelessness, feeling trapped, social withdrawal, increased alcohol use, or significant behavioral changes.

According to psychiatrist Branco, statements about death or no longer wanting to live should be taken seriously and warrant seeking help.

“Suicidal ideation should be addressed more openly, both in the doctor’s office and in therapy groups. With proper management, we can reduce the risk and try to help patients,” Branco notes.

The specialist points out patients were extremely anxious because of the losses caused by gambling. “Some have thoughts of death, and in the most severe cases, they already experience suicidal ideation because of the financial losses they have suffered,” she explains.

Seeking help is essential

Neurosurgeon Orlando Maia says that people with gambling addiction may come to see gambling as part of their daily lives as they seek the reward it provides. He explains that people often do not recognize the problem on their own. “They need family members or friends who can help.”

Psychologist Claudia Feres, who works at a Psychosocial Support Center in the Federal District, recommends that people with gambling addiction and their families seek professional help. “People come to us who have had suicidal thoughts and have, for example, attempted to take their own lives. It’s a desperate cry for help, as if they were saying they need to end their lives right then and there.”

One of the problems, experts say, is that online gambling was easily accessible and available practically 24 hours a day.

“It’s a casino in your pocket,” said Luiz Carlos*, 71, a member of Gamblers Anonymous. “Thank God I don’t gamble anymore, because if I did, I’d be lost. In my day, we had to leave the house to gamble. Today, you don’t have to anymore,” he told Rádio Nacional in an interview days before the government banned betting platforms amid public health concerns.

In August, as health problems linked to gambling addiction increased, Brazil’s national public health system, the SUS, expanded the number of monthly telephone counseling sessions for people experiencing problems related to online gambling.

Following Friday’s announcement of the betting ban, the Ministry of Health announced it would step up efforts to reach out to people with gambling problems, offering support and treatment when necessary. According to Minister Alexandre Padilha, the ministry will implement active outreach policies based on data shared by the Ministries of Finance and Public Security and the Federal Revenue Service.

*Fictitious names were used at the request of the interviewees.