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Lula said he intends to discuss the matter with his team and analyse potential measures to consider the social impact of online betting.
What the president does not acknowledge is that the government relies on revenue from the sector. In just the first seven months of 2026, BRL8.747 billion generated by sports betting has already flowed into public coffers. The Federal Revenue Service estimates the total could reach BRL16 billion by the end of the year. In 2025, nearly BRL9 billion was collected from sportsbooks.
The burning question is where such funds will come from if Lula shuts down the betting industry. Yet, no one points out to him that players will simply migrate to the illegal market. Betting will continue to exist, but without formal tax revenue, oversight or player protections.
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The contrast with land-based gambling is striking. Casinos in Morocco and Egypt operate within recognised frameworks and, in Morocco, attract international investment. Private online betting remains outside the legal market.
The scale of that unlicensed market is unclear. MDJS’ own estimate of about MAD3.5 billion a year is the only figure available. No comparable public estimate exists for Tunisia or Egypt.
Without a licensing route, these markets remain difficult to measure, tax or supervise. Blocking and criminalisation may disrupt operators, but they do not remove demand. Governments are left trying to suppress offshore betting rather than bring it within a regulated market.
