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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.

It will be up to the government to effectively curb the illegal market so the regulated sector continues to generate taxes and jobs while upholding responsible gambling practices. By riding the wave of criticism against betting companies, the government is diverting attention from the true cause of household indebtedness.

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Skillz argues in its court petition that Chapter 15, which governs cross-border insolvency proceedings involving foreign companies operating in the U.S., shouldn’t apply.

“A proceeding aimed at impairing a single creditor is not the collective administration Chapter 15 contemplates, and the mismatch is not a technicality. It is part of the Debtors’ bad faith effort to forum shop for the most advantageous tool to use against their litigation adversary,” Skillz attorneys alleged.

The Debtors here deployed an insolvency statute against the one creditor whose judgment they wished to defer and compromise, left every ordinary-course creditor untouched, preserved their own equity, and sought releases for the insiders who directed the conduct that produced the judgment—then asked this Court to treat that machinery as proof that their affairs are centered in Israel,” the petition continued.

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The regulator noted that several operators received “additional points for attention”, indicating that while these applicants met minimum legal thresholds, the KSA expected continuous improvements in compliance practices.

In June, one of the operators, TOTO online BV, was reported for violating the ban on featuring role models in advertising materials.

This was not the first time TOTO has been in trouble with KSA. The platform was fined in 2022 for a similar endeavour – gambling advertisements that were seemingly aimed at young people.