Brazil's Lula bans online gambling. Describes it as "cancer"

[stompix]

Before gambling is banned, it must be regulated, because prohibition leads to reckless use of what is banned, and the market ends up in the hands of organised crime. There are studies showing that when something that is banned is regulated, its use also becomes normalised because it loses its appeal. For example, during the American Prohibition era a century ago, alcohol consumption was high with illegal distilleries everywhere; then Prohibition was abolished and the use of alcohol was regulated, and as a result, alcohol consumption normalised at lower levels.

This is misinterpreted data.
Alcohol consumption grew during the prohibition but only after dropping like a rock at the start of it, so even in the last month it was still below the consumption that happened before the act.

Also, the whole thing about the mafia and how it can't be enforced is also wrong
-Consumption of alcohol was not a federal crime, nor entitled to a federal fine
-The fine for being caught manufacturing alcohol was at max $1000 adn 6 months in prison; that is ~15k around now

People did it because there were basically no consequences, so this myth was raised and put as an example.

Now, do a drug offense in Singapore comparison, you get caught, you get hanged! Any mafia structures there? Anything?
When people talk about prohibition in the US they should look at prohibition in Iran for example:
https://www.theguardian.com/world/2012/jun/25/iranian-pair-death-penalty-alcohol

[danadc]

I see reason with you because a news like this is a real setback mostly for Brazilian football that will be faced with a forced liquidity problem following loss of sponsorship and with more borrowing with interest that may crumble the aspirations of some of the league football clubs in the country.
However, before this ban will be enforced, Congress must have to vote to accept it or reject it and the outcome of this may be the reason for increase in dark market for crypto currency betting or not.

I don't really know how things work with the laws in Brazil, but I've seen the same thing on the news. I thought it was already being implemented, but these things hold the country back, decrease jobs, and that's something that's very annoying—being in a country where they prohibit you from...it's even more infuriating that it's because of the whim of a capricious old president who doesn't see the potential of many businesses in the world.

[Fiasem20]

The ban may not pose a serious change or adjustment to those that are still interested in gambling,there’s always an alternative to gambling.There are other things and illegal activities the government always fail to address but the ones that are not really necessary are the ones the government would find delight in posing strict regulations.In my country I don’t think the government would ban online gambling so soon not even in the future because they’re tasking those online gambling huge license fees and it’s quite impossible for them to ban online gambling casinos,anyways even if the Brazil government ban legalized online casinos,gamblers in that region would switch their preferences to crypto casinos and still enjoy their fun.

[Somegory]

If I am a Brazilian I will have to depend on VPN connection and the problem is passing KYC that's linked to the VPN connection that I am using, it has to be the same, from here on I pity all gamblers from Brazil, it won't be easy anymore.

It's a shame on the Brazil government for having to handle gambling this way, it's not the right thing to do, there are other ways they can just limit their citizens from gambling exposure.

[Hispo]

... What's happening in Brazil is absolute madness.

Yes, it is madness.
It pretty much shows that all this stuff which the president is doing with their national gambling industry is a product of utter improvisation and there is no planning behind it.
It is like... Changing the course of the gambling industry in Brazil because of the will and whim of the president.
In any serious country the president and the state in general would be forced to respect those licenses which were issued for 30 million so gambling could not be outlawed for several years.

This is a political and populist move which is being pulled by Lula in order to have a chance to defeat Bolsonaro in the incoming presidential elections.

Lula is playing every card he has up his sleeve. Yesterday, there was supposed to be a presidential debate on Brazil's largest TV network, but Lula's political party went to court so that he wouldn't be mentioned during the debate, which, by the way, he had already confirmed he wouldn't attend. Due to legal uncertainty, the TV network decided to cancel the debate, leaving the Brazilian people unable to hear the candidates' proposals. It's tough, man. The government is completely lost, and I believe that if Lula is defeated at the polls, something will happen... these people just don't want to leave power anymore. Let's see what happens with the betting companies; I don't think the provisional measure will stand. After all, it's way too much lost money that these companies won't just accept losing.

In the case of Lula, he has been tagged as a populist and someone who is not willing to leave power by his political foes and adversaries.
This messy situation with gambling in Brazil just shows how authoritarian he actually is and how the power in Brazil is centralized in a single person. It is not supposed to be that way at all, obviously.
The least thing the administration of Lula could do would be refunding all those gambling companies who had already paid for their licenses to operate in Brazil.

[pawel7777]

Aside from the gambling ban, there are some disturbing signals relating to Brazil and the election.
US decided to halt consular services in Brazil ahead of the election, as if they expect something bad to happen. Do they expect Lula will not hand over his power peacefully should he lose to Bolsonaro Jr, who was leading the polls?

Source: https://x.com/realtek12345/status/2105880046980190316

I'm hearing Australia did the same.

Prediction markets also noted a drop in Flavio Bolsonaro's chances yesterday.

[Webutxo]

If I am a Brazilian I will have to depend on VPN connection and the problem is passing KYC that's linked to the VPN connection that I am using, it has to be the same, from here on I pity all gamblers from Brazil, it won't be easy anymore.

It's a shame on the Brazil government for having to handle gambling this way, it's not the right thing to do, there are other ways they can just limit their citizens from gambling exposure.

How can you passed a kyc when you are not from the host VPN country? I thought kyc are done with you holding and ID and the Day you did the kyc. I think it's hard to do or manipulatr the kyc of some cainso unless you have a friend in other countries that will help you to undergo kyc verification. However, I will not advice you to do so because if anything goes wrong and they ask for information, you will have to look for the person that verified the account for you and that is going to be a problem if the person is not close by and also if he is willing to do it for you.

I hope the Brazilian government reconsider what they are trying to do here. Many people are going to be affected, some people depend on gambling for survival because they make money from gambling. You can say the government is helping the citizens but they are also taking food from some people's mouth. Some people that have online gambling jobs will be jobless.

[uneng]

Curiously, neither of his sons have political careers. But the one who carries his name, Lulinha (Little Lula), is being investigated once again in a corruption scandal involving a scheme with money from public pension fund for elders.
None of his kids could run for presidency after him and his political legacy must be desired by another leftwing politicians. There isn't a clear figure to replace him, though.

Is that because they were convicted cause some just being investigated under some charge here in Europe doesn't lose any of his constitutional rights till a final sentence?

Actually, unlikely in Bolsonaro's family, in Lula's family it has never been a tradition to involve wife and sons directly in politics (as candidates). Only a stepson of him candidated himself and got elected, but it was a minor position and he didn't go ahead... His family always had access to the benefits on the backgrounds, indirectly, and through schemes like the pension fund one mentioned previously.

Reality is that brazilian people don't want to take responsability for their own acts. They don't blame themselves for being in debt and gambling more than they could afford to lose. They blame everyone else, but them.

You're missing a huge chunk of the ones who would applaud this measure.
Family members of the ones addicted to gambling that cnat stop their relative from losing money!
Those are the hardcore voters against gambling, and if you knew the stories of some, you would be a bit more mildly critical about this.

It's totally true, people are suffering by seeing relatives in heavy debt, taking loans and addicted to gambling. However, it doesn't change the fact people need to be responsible for their acts. Gambling won't stop existing because some people get addicted to it. People need to learn how gambling works for real, what they should expect from it and when they should play or not play it.

The government isn't concerned about educating citizens regards this matter. They just want to use the (temporary) prohibition to raise Lula as the savior of the poor and opressed. While people continue thinking like that, nothing will change.

Brazil is a fertile land for corrupt, manipulative and populist individuals, and one of the reasons why it works like this is because people in general don't want to get responsible for their lives. They always expect a third party will come in their aid to save and solve their problems, while they continue repeating current noxious patterns.

[batang_bitcoin]

Aside from the gambling ban, there are some disturbing signals relating to Brazil and the election.
US decided to halt consular services in Brazil ahead of the election, as if they expect something bad to happen. Do they expect Lula will not hand over his power peacefully should he lose to Bolsonaro Jr, who was leading the polls?

Well, that's a good measure for them as they know it is Brazil and anything can happen more than what they're expecting. Election can be this too much and they have to protect their people first and so closing their embassy office there is the right thing to do and wait until the election is done and the dust settles.

[TastyChillySauce00]

Aside from the gambling ban, there are some disturbing signals relating to Brazil and the election.
US decided to halt consular services in Brazil ahead of the election, as if they expect something bad to happen. Do they expect Lula will not hand over his power peacefully should he lose to Bolsonaro Jr, who was leading the polls?

Source: https://x.com/realtek12345/status/2105880046980190316

I'm hearing Australia did the same.

Prediction markets also noted a drop in Flavio Bolsonaro's chances yesterday.

I feel it's only USA's effort to discredit brazil's election. As far as i can tell you US doesn't want Lula to be chosen again, and this is why they're doing it. But US is not the only one who did it because Australia is also doing the same citing the security concern may happen during the vote, nevertheless, i think the vote will be running for well, and there's nothing to feel worry. I see it's as only outsiders attempts to meddle their election and no more.

Aside from that i also aware Bolsonaro's chance is declining a bit at Poly, but it's not so significant, and the gap still relatively big.

[marrcelo]

Ahead of the impending Brazilian presidential election, the current president, Luiz Inacio Lula da Silva, decided to unexpectedly crack down on online gambling.

The government collected R$15.3 billion since the regulation in 2025 and will not want lose this collection. This measure seems electoral. After the election, the casino can return, or more taxes for us Brazilians pay.

[UpTober]

Such a decision will not have much impact on gamblers because there are many countries in the world where gambling is directly prohibited but gamblers in all those countries use strong and secure VPNs to conduct their gambling activities. Similarly, if I were a Brazilian citizen, I would first select a good paid VPN and then connect to that VPN and continue my gambling.

[Muba20]

I see reason with you because a news like this is a real setback mostly for Brazilian football that will be faced with a forced liquidity problem following loss of sponsorship and with more borrowing with interest that may crumble the aspirations of some of the league football clubs in the country.
However, before this ban will be enforced, Congress must have to vote to accept it or reject it and the outcome of this may be the reason for increase in dark market for crypto currency betting or not.

I don't really know how things work with the laws in Brazil, but I've seen the same thing on the news. I thought it was already being implemented, but these things hold the country back, decrease jobs, and that's something that's very annoying—being in a country where they prohibit you from...it's even more infuriating that it's because of the whim of a capricious old president who doesn't see the potential of many businesses in the world.

I don't understand what exactly the country wants at this time. But it is certain that maintaining the balance of the economic condition will definitely be complicated for him. While other countries are trying their best to create new jobs, this government is destroying established jobs. I don't know why he take this step at this time, but he has taken a decisive decision. If no gamblers were betting elsewhere, I would consider his decision to be logical, but it certainly seems that his decision will make illegal platforms rich. The general public will definitely conduct betting activities, but the government will only lose their revenue. The government that makes gambling illegal will now itself be in trouble in a few days. The clubs will lose money, they will fail to repay even if they take loans. This decision of the government will create a barrier for all football of the country.

[qwertyup23]

He also does not feel obliged to return the gambling licence fees that around 85 companies paid in order to be allowed to operate in Brazil. Those licences, most of which are said to be purchased within the last 2 years, are worth approximately half a billion USD.

This somehow makes sense especially if their State exercises police power.

Police power is defined as the power of the State to restrain the use of liberty and property for the benefit of the general welfare and common good. It also includes the power of the State to cancel contracts which has been previously entered by the State. Even if it impairs subsisting contracts, such must yield to police power for the benefit of the public.

I do think that the President of Brazil has been enlightened that the best course of action against gambling would be to outright prohibit its exercise within its country. Though it sucks to be a gambler who currently lives or sojourn in Brazil, everything still must yield to the police power of the State for the benefit of the common good.

[Marvelockg]

I read that that move could also potentially bankrupt some of the biggest football clubs in the country that are reliant on sponsor money from gambling businesses. I hear that he offered them loans to mitigate liquidity risks, but that's just not the same.

It is going to hit really hard on clubs in this area because imagine that in the premier league, all the gambling related sponsors are completely taken out, most clubs will struggle for sponsorship because gambling is the only industry that is directly intertwined with sports. but then, every country knows what they feel is in the best interest of her citizens and when they make this kind of seemingly hard decision, citizens can do little than complaining and that is all.

A change of administration can still birth a change in the degree of compliance to this kind of regulation we have seen it happen in other countries.

[pawanjain]

This looks to me more like a political move than a measure to prevent gambling in the country.
Calling it a cancer and trying to ban it upright without refunding license fees to the casino site owners is completely wrong.
We all know that those football teams are dependent on such casino sites for sponsors and this news will definitely impact them.

[Orpichukwu]

I don't really know how things work with the laws in Brazil, but I've seen the same thing on the news. I thought it was already being implemented, but these things hold the country back, decrease jobs, and that's something that's very annoying—being in a country where they prohibit you from...it's even more infuriating that it's because of the whim of a capricious old president who doesn't see the potential of many businesses in the world.

It was just a rumour over a couple of weeks ago, but now I think it has now been passed to law. The congress have voted in its favour, which is something we all can agree is being done not in favour of those gambling businesses, but it’s something they are doing for their own interest. Jobs are going to be taken away from those who work in such facilities, and the unemployment rate will be on the high side. I won’t even talk about gamblers, as it’s certain they will go to offshore casinos to fill their desire, and from the news published by the op above, it seems countries are trying to play safe against the upcoming election and political instability in the country.

[rdluffy]

Aside from the gambling ban, there are some disturbing signals relating to Brazil and the election.
US decided to halt consular services in Brazil ahead of the election, as if they expect something bad to happen. Do they expect Lula will not hand over his power peacefully should he lose to Bolsonaro Jr, who was leading the polls?

Source: https://x.com/realtek12345/status/2105880046980190316

I'm hearing Australia did the same.

Prediction markets also noted a drop in Flavio Bolsonaro's chances yesterday.

If you'd like to talk more about this specifically, I actually started a thread here: https://bitcointalk.org/index.php?topic=5595736.msg67202126#msg67202126
So we don't go off-topic here 



Getting back to the topic, President Lula said something quite interesting:

“Why didn’t I do it sooner? Because I didn’t know,” Lula told interviewer Igor 3K of the Flow Podcast when asked about the decision to ban betting just a few days before the election. The president advocated for the elimination of the sector rather than new regulations. “Every time you regulate it, it just seems more like an illegal activity. So this has to end once and for all,” he stated.

Source here

[Hispo]

This looks to me more like a political move than a measure to prevent gambling in the country.
Calling it a cancer and trying to ban it upright without refunding license fees to the casino site owners is completely wrong.
We all know that those football teams are dependent on such casino sites for sponsors and this news will definitely impact them.

The government of Brazil and Lula seem to be aware of the dependency of Football clubs of gambling and betting sponsorships, so Lula has alledgelly proposed to give credits to those small and medium sized football clubs in order for them to continue to be in business and not to cut programs funded by them.

And I agree with you, this is rather just a political move by Lula to secure more votes in the coming elections. He seems to be desperate.

At the very least, there should be massive refunds to casinos and bookies who paid for their licenses to be able to legally operate in Brazil.

[Abdul Sami786]

This looks to me more like a political move than a measure to prevent gambling in the country.
Calling it a cancer and trying to ban it upright without refunding license fees to the casino site owners is completely wrong.
We all know that those football teams are dependent on such casino sites for sponsors and this news will definitely impact them.

The government of Brazil and Lula seem to be aware of the dependency of Football clubs of gambling and betting sponsorships, so Lula has alledgelly proposed to give credits to those small and medium sized football clubs in order for them to continue to be in business and not to cut programs funded by them.

And I agree with you, this is rather just a political move by Lula to secure more votes in the coming elections. He seems to be desperate.

At the very least, there should be massive refunds to casinos and bookies who paid for their licenses to be able to legally operate in Brazil.

This may be possible because government agencies also participate in such businesses, some secretly and some openly, there is no grantee of this. Because the way fans come to Brazil, it can be felt that so much money is invested in football. Brazil must want to gain an old name in football so that it becomes a famous country in football or sports. Football has become very famous and whoever works hard to make a name here or improves his team by investing money also succeeds in it. Fans are a very important thing because if a team has to be run and to cover all its expenses, the investor has to give as many funds as possible and when there is an income in winning, funds are also collected from there and income is also earned.