Brazilian President Luiz Inácio Lula da Silva has signed a sweeping measure banning sports betting and online casino operations, a move that could deal a major financial blow to the country’s football clubs just days before the presidential election.
Lula signed the provisional measure on Friday in São Paulo, describing the rapid expansion of online gambling as a serious social problem linked to household debt and gambling addiction.
The measure immediately prohibits the operation, offering, intermediation and advertising of fixed-odds betting platforms in Brazil.
Under the new rules, betting operators can no longer accept new deposits into customer accounts. Bettors have until 11:59 p.m. on October 5 to withdraw funds remaining in their accounts.
From October 6, affected betting websites and applications are expected to go offline, while existing betting sponsorship and advertising arrangements will be terminated.
The government said the measure is intended to address the social and financial consequences associated with the rapid growth of online gambling.
Lula defended the decision in strong terms, arguing that the country could no longer ignore the impact of betting on Brazilian households.
The ban represents a dramatic reversal of Brazil’s recent approach to the betting industry. Fixed-odds betting was legalised and brought under a regulatory framework in 2023, paving the way for the rapid expansion of licensed betting companies.
The latest measure now threatens to remove one of the biggest sources of commercial sponsorship for Brazilian football.
Betting companies have become prominent sponsors across the country’s top-flight football system, with numerous Série A clubs carrying betting brands on their shirts and commercial properties.
The cancellation of those agreements could leave clubs facing significant financial losses and searching for alternative sponsors.
Brazilian football authorities and clubs had previously raised concerns about the financial consequences of eliminating betting sponsorship, given the industry’s growing importance to the sport’s commercial ecosystem.
Lula, however, has maintained that football clubs will need to find alternative sources of revenue rather than depend on money generated by an industry the government considers socially harmful.
Government officials have indicated that discussions will be held with affected football organisations and other sectors to assess the consequences of the new policy.
The provisional measure still faces Brazil’s congressional approval process. Under the country’s rules, it must receive congressional approval within 120 days to remain permanently in force.
The government has also sent a separate bill to Congress proposing tougher measures against betting promotion and the use of personal data to target potential gamblers.
The ban comes just nine days before Brazil’s first-round presidential election, scheduled for October 4, 2026, adding a significant political dimension to the announcement.
Lula is seeking another term in office, while Senator Flávio Bolsonaro, son of former President Jair Bolsonaro, is among the candidates challenging him.
The timing has prompted criticism from political opponents, including Bolsonaro, who have questioned the government’s motives and characterised the measure as politically motivated. Those claims are political interpretations rather than established facts.
The government, for its part, has presented the measure as a public-policy response to gambling-related debt and addiction rather than an electoral strategy.
The new rules do not eliminate other lottery formats authorised under Brazilian law.
For Brazilian football, however, the immediate issue is financial. If the ban takes effect as scheduled, clubs that rely heavily on betting companies for shirt sponsorship, advertising and other commercial partnerships will have to adjust rapidly to a dramatically changed sponsorship market.
The October 6 deadline could therefore mark a major turning point for both Brazil’s betting industry and the business model that has developed around football sponsorship in recent years.
Shola Akinyele
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