Brazil election heads to second round as gambling’s future hangs in the balance

The future of regulated online sports betting and igaming in Brazil remains unclear as the tightly fought presidential election race heads for a second round run-off on 25 October.

The first round, which took place on Sunday, 5 October, saw no candidate emerge with the required 50% of votes to become president at this stage.

With almost all of the votes counted, Flávio Bolsonaro was sitting at 47.03% while incumbent Luiz Inácio Lula da Silva managed to secure 45.16%

In raw figures, that translates to Bolsonaro with 56.1m votes versus Lula’s 53.8m.

As per the AFP, Bolsonaro, the son of former right-wing president Jair Bolsonaro, said on Sunday: “I am very happy with the real possibility that, three weeks from now, Brazil will give a definitive answer by choosing a modern government.”

Lula said the first result was “unexpected” but that the octogenarian remained up for a fight.

“I admit I was convinced I would win in the first round,” he remarked. “The game is about to start. We are in extra time. In extra time, we will win over the Brazilian people.”

Last month, Lula signed a provisional measure to ban all regulated online sports betting and igaming in Brazil from 6 October.

The measure is temporary and must be approved by Congress within 60 days, although this timeline could be extended by a further 60.

Lula described the industry, which regulated on 1 January and launched during his presidency, as a “cancer” that would end up “destroying” Brazil if not be curtailed.

Whoever becomes the next president will not necessarily make the sector’s future any clearer in the South American country as there is no guarantee Bolsonaro would revoke Lula’s provisional measure.

However, Bolsonaro did describe the move as “desperate” and “populist, hypocritical and election driven” in comments following the announcement of the ban.

Earlier this year, Bolsonaro reportedly said he would allow online sports betting to continue but was against online casino. He is in favour of land-based casino legalisation. 

Jair Bolsonaro, who is serving a 27-year prison sentence for his part in a failed coup following his loss to Lula in 2022, approved a 2018 piece of legislation to permit the sector.

The younger Bolsonaro has pledged to pardon his father should he become president. Jair Bolsonaro’s wife, Michelle, was elected to the Senate on Sunday.

H2 Gambling Capital has forecast up to BRL30bn (£4.3bn) will shift to the illegal market after the ban comes into play, although Regulus Partners has suggested there is an 85% chance the shutdown only lasts a few weeks or months.

Bolsonaro will be confident the 25 October run-off will see him hoover up the vote share that other right-wing candidates secured in the first round.

For example, Renan Santos of the right-wing Mission Party, founded three years ago, secured 2.24% of the vote. His supporters would most likely back Bolsonaro in a two-horse race.

The post Brazil election heads to second round as gambling’s future hangs in the balance first appeared on EGR Intel.

 Online sports betting and igaming to be banned from 6 October, although incumbent President Lula loses in first round to primary rival Flávio Bolsonaro
The post Brazil election heads to second round as gambling’s future hangs in the balance first appeared on EGR Intel.