President Luiz Inácio Lula da Silva's government is split over a provisional decree to restrict online gambling, known in Brazil as bets. Lula and the presidential communications office (Secom) want the text to ban online betting. The Finance Ministry resists, arguing the move would cost roughly 12 billion reais in tax revenue. The dispute was reported on Sunday (Sept. 20) by Painel, the political column of Folha de S.Paulo.
The measure was drafted by the Finance Ministry and is under review at the presidential palace, the newspaper Estadão reported on Thursday (Sept. 17). The plan is to publish it and send it to Congress before the first round of the presidential election, set for early October. Sources heard by the outlet Brasil de Fato said Lula intends to sign the text on Wednesday (Sept. 23). The ministry estimates betting moves about 60 billion reais a year in Brazil.
What the measure would do
The text targets online casino games such as "jogo do Tigrinho" (Fortune Tiger). Officials quoted by Estadão call banning that game "emblematic", because the platform accounts for 40% of the bets placed in the country. Sports betting, club sponsorships and tournaments would stay out of the ban, but face tighter advertising rules, according to Brasil de Fato.
The government is also weighing a 180-day grace clause, Estadão reported. Under it, the ban would only take effect after that period. In practice, Congress would have to approve the measure before the ban becomes binding. If lawmakers reject it, the ban dies. If they pass it, it becomes law.
Football's backlash
On Thursday (Sept. 17), the São Paulo, Rio de Janeiro and Bahia state football federations and clubs from Brazil's top two divisions released a manifesto titled "The end of Brazilian football". The clubs warn of a risk of insolvency and losses of up to 1 billion reais in sponsorship deals. Brasil de Fato reported the government had at one point studied a total ban on bets and backed off after football's reaction. Lula has sharpened his own language, calling bets a "disease" and a "disgrace of lies". In April he said football "lived a century and a half without bets".
The next step is the signing, set for Wednesday (Sept. 23), and the dispatch to Congress. A provisional decree in Brazil takes effect immediately, but must be approved by the Chamber of Deputies and the Senate to become permanent law. The final scope of the text, a ban or only restrictions on online betting, still depends on the outcome of the negotiation between the presidential palace and the Finance Ministry.