Revelations and leadership changes at the top of Brazilian gambling have shifted the future of the country’s gambling market.
President Inácio ‘Lula’ da Silva has been unrelenting in his criticism of the ‘Bets’ regulatory regime as campaigning ramps up ahead of Brazil’s general election.
Pulling no punches about his stance, he has accused operators of “taking money from the poor people of this country”.
At the beginning of the month, Régis Dudenna also announced his exit as the head of Brazil’s gambling regulator, the Secretariat of Prizes and Betting (SPA), being replaced by Daniele Correa Cardoso.
Billionaires, banks and bets
Animosity towards the Brazilian gaming market aligns with the PT Government’s slogan of BBB Tax – billionaires, banks and bets – as the government lays out to voters the areas which they will target if successful in October’s election.
“I learned to be against gambling. I was against casinos and the illegal numbers game because the church taught me that I had to oppose gambling,” said Lula, speaking at a healthcare and education summit in São Paulo.
“What is happening today is that the casino has gone inside people’s homes. It is in the living room, in your children’s hands.”
These words add to a long list of occasions when Lula has criticised the gambling industry, despite signing into law the bets regime in December 2023.
Since then, he has spoken about social harms associated with online gambling, advocated for stronger controls on the industry and greenlit a staggered tax increase from 12% to 15% by 2028.
“Online casinos have entered people’s homes, so that a 10-year-old can pick up their father’s phone and gamble,” said Lula in January.
“With the number of betting platforms that have been created, this is taking over football, advertising and corruption. You can see the work the Central Bank is doing to try to make sure these companies at least pay taxes in our country.”
All change at the top
A shift in leadership at the top of the SPA caught many by surprise.
Dudenna was appointed as head of the regulator upon its creation in January 2024 and helped oversee the licensing process ahead of the launch of regulated online gambling in Brazil.
He is transitioning to become Secretariat for Economic Reforms (SRE) within the Ministry of Finance, and will be in charge of microeconomic policy areas such as regulatory reform, capital income tax policy, credit-related agendas, and financial market development.
His replacement, Cardoso, was previously the regulator’s general coordinator of responsible gambling and has promised to follow the established regulatory agenda.
Following the announcement of her appointment, she said: “The SPA’s priorities remain focused on consumer protection and the popular economy.
“We have a regulatory agenda for 2025 and 2026, and another for 2026 and 2027, including public consultation. The priority is the continuation of our work in combating the illegal market, monitoring, inspection, prevention of fraud and money laundering and promoting responsible play.”
A pivotal moment
Political and regulatory uncertainty comes at a pivotal moment for the Bets regime as operators prepare for the upcoming FIFA World Cup – the first major tournament to be held since the onset of regulation.
Any disruption risks derailing what is a major opportunity for the regime to demonstrate the economic benefits of opening up the regulated sector.
“It’s a moment where the world stops to engage in various forms with the World Cup, and the pool of customers increases substantially,” Samuel Vilar Pereira, Head of Sportsbook at UX Group, told iGaming Expert.
“It’s a huge opportunity for operators of all sizes to increase their market share and keep the business growing during the license period. [But] with the regulation, the market is even tougher for everyone, from small to huge companies.”
