Lula's victory in Brazil could bring a ban on online gambling

Luiz Inácio Lula da Silva, who won Sunday's election by defeating Flávio Bolsonaro, will take office as president for a fourth time. The ban, announced in September, could bring an end to the country's online gaming and sports betting industry. The industry was legalized two years ago.

Entain's partypoker and Flutter Entertainment's PokerStars brand have major operations in Brazil. If the ban promised by the 81-year-old president takes effect, these operations would be upended. Lula compared the industry to "cancer." The management, for its part, argued that there is no regulation preventing minors from betting.

Under the law, offering fixed-odds betting would also become a crime. The laws must pass through Congress within 120 days. According to Regulus Partners, the country's gaming industry generates annual net revenue of $5.7 billion. The government estimates that households bet around $11.57 billion online each year.

It is not clear whether the ban will pass Congress. Although Lula won the election, the legislature shifted to the right in the last vote. According to Regulus, the courts could decide the matter. Another possibility is that the ban remains in place while the states issue licenses, a system similar to the one in the United States.

Brazil legalized fixed-odds sports betting in 2018 and online casino games in 2023. The country, with a population of about 214 million, is an important hub for online poker operators. Bolsonaro called the decision "populist, hypocritical and politically motivated." The industry representative NAGL said it will take the decision to court and seek refunds of the fees paid for five-year licenses.