The government of the Brazilian state of Rio Grande do Sol has changed its tune regarding the revival of the state lottery – moving to exclude betting from the picture.
As reported by SBC Noticias, Eduardo Leite, the Governor of Rio Grande do Sul, may exclude betting companies from participating in the tender to operate the state lottery.
The state government unveiled plans to grant lottery service concessions in December 2025, opening a 44-day public consultation on the project and estimating private investment of R$52.6m (£7.5m) across a 20-year contract.
The initial proposal included both traditional, instant and prediction lotteries across both online and retail verticals, as well as fixed-odds sports betting. However, in an increasingly hostile political climate regarding betting, the state Governor is having doubts.
“To be clear, I don’t like gambling. I believe that gambling regulations in Brazil need to be reviewed,” said Governor Leite, during a press conference held at the Federation of Commercial and Business Associations of Rio Grande do Sul (FEDERASUL),
He continued: “I believe they should be restricted as much as possible. I believe gambling advertising should be restricted, just like cigarette advertising. Gambling is causing enormous harm to Brazilians.”
A regulated betting market, known as ‘Bets’, was launched in Brazil on 1 January 2025, replacing a pre-existing grey market – though grey market and black market operations continue to linger.
Overseen by the Secretariat of Prizes and Bets (SPA), part of the Ministry of Finance, the market has proven lucrative for the government with the latest figures suggesting a tax intake of R$2.5bn in January-February 2026.
Concerns about the societal impact of the regulated market, such as the way it is advertised and how it can impact the finances of vulnerable people, have abounded in recent months, however.
President Lula da Silva, who signed off on the 1 January 2025 launch of the Bets market, has become increasingly critical of the sector. It seems other politicians, like Rio Grande do Sol’s Governor, are doing the same.