Brazilian President Lula called for government unity to ban online gambling in his International Women's Day speech on Sunday, describing gambling addiction as a "tragedy" for the nation and accusing digital casinos of indebting families through mobile phones. This statement immediately triggered a strong backlash from the licensed gambling industry. Simply put, he was the one who legislated gambling initially, and now he is also the one calling for its ban, making the industry feel deceived. Want to understand the policy turmoil in Latin America's largest gambling market? PASA official website keeps track.
Industry Counterattack: The ban will only push players to the black market
Ramiro Atucha, founder and CEO of Atucha Strategic Consulting, directly criticized Lula's remarks as "disrespectful" to market investors, potentially damaging their confidence in mergers and acquisitions. He emphasized that licensed operators must strictly comply with KYC and certification regulations, bear high tax burdens and a 30 million real license fee, calling Lula's accusations "baseless." He warned that the ban would only push players towards unregulated markets, and all the problems listed by the government actually stem from unlicensed operators. Udo Seckelmann, a partner at Bichara e Motta Advogados, also stated that Lula showed a "misunderstanding" of how the industry operates, with regulations designed during his tenure aimed at bringing existing activities under supervision. The ban will not eliminate the market, only push it back into the shadows.
Sensitive Timing: Women's Day speech causes dissatisfaction among female workers
The Women's Association of the Gambling Industry expressed "surprise and concern" over Lula's remarks on Women's Day, criticizing the president for his "lack of understanding" of the industry. The association emphasized that this day should have celebrated Brazilian women, but was used to threaten a measure that could directly affect the livelihoods of hard-working professional women, which is unacceptable under any circumstances. They pointed out that many women in the gambling industry decently support their families.
Policy Fluctuations: Lula's government has repeatedly attempted to increase taxes
Although Lula's government pushed for gambling regulatory legislation in December 2023, it has repeatedly tried to restrict licensed operators after the market opened. The government attempted to raise the gambling tax rate from 12% to 18% unsuccessfully, but successfully pushed for progressive taxation by the end of 2025, with the tax rate rising to 15% from 2028. Last July, the Finance Minister also threatened that if Congress proposed a vote to support the ban on gambling, it would provoke strong criticism from the industry, accused of ignoring the key issue of illegal gambling.
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This article is from "PASA-Global iGaming Leaders" gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
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PASA official website: https://www.pasa.news
