Brazil's Gambling Debt Crisis

Online Gambling and Record Debts Overshadow Brazil's Upcoming Presidential Election

Brazil's presidential election is overshadowed by concerns over U.S. meddling, a scandal at the Supreme Court, and the fallout from a multibillion-dollar banking corruption investigation. However, the primary issue is personal debt, with over 80 percent of Brazilian families in debt, a historic high for the country. This is due to easy credit and the rapid growth of online betting. Despite this, President Luiz Inácio Lula da Silva banned online gambling days before the election, which has exacerbated the debt crisis. Brazil also has the highest benchmark interest rate among 40 major economies and families spend nearly 30 percent of their income on debt payments. The debt is fueled by credit cards, payroll loans and retail store installment plans with among the highest interest rates in the world. The growth of Brazil's online gambling sector has exacerbated this debt problem.

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