Brazilian President Luiz Inácio Lula da Silva has ordered a ban on online sports betting, just days before the country heads to the polls for the first round of its presidential election.
The measure, announced on Friday, immediately stopped new deposits into betting platforms and represents a major reversal less than two years after Brazil established a regulatory framework for the industry.
Finance Minister Dario Durigan said betting companies would no longer be allowed to accept new deposits. Users will have until October 5 to withdraw or collect funds remaining on their accounts, while websites and applications are scheduled to be blocked from October 6.
The decision comes as Lula seeks another term in office, with the October 4 election approaching and polls showing a close contest involving right-wing Senator Flávio Bolsonaro.
Brazil’s betting industry has grown rapidly since regulations were introduced, with heavy advertising involving football clubs, influencers and prominent players.
Thirteen of Brazil’s 20 top-flight football clubs have betting companies as their main shirt sponsors. The government said 85 betting licences had been issued, with each licence costing 30 million reais.
The new restrictions also affect advertising and sponsorship. New betting advertising agreements have been stopped, while existing sponsorship arrangements are due to become invalid after October 6.
The move has sparked opposition from parts of Brazil’s football community. Flamengo described the ban as a major setback for Brazilian sport, warning that the financial impact could extend beyond professional football to youth development, women’s football and Olympic sports.
The club argued that businesses and sports organisations had made investments based on the country’s existing regulatory framework and should not have those arrangements abruptly overturned.
The government, however, says the rapid growth of gambling has created a public health and household debt problem.
Durigan said Brazilian families were spending around 60 billion reais annually on online betting. Government officials have also pointed to the significant tax revenue generated by the sector. In 2025, betting companies reportedly paid 9.95 billion reais in taxes.
Lula defended the decision by comparing gambling addiction to a serious disease.
“I decided to take a necessary, tough, and drastic measure. It’s like cancer,” he said. “Either we remove the tumor, or it kills us.”
The president said he had heard the account of a young man who had attempted suicide three times because of gambling addiction.
The ban has also attracted criticism from the betting industry, which warned that shutting down legal platforms could push gamblers towards illegal operators.
The National Association of Games and Lotteries said stronger enforcement and regulation would be preferable to an outright prohibition, while also warning of potential losses in tax revenue and employment.
Flávio Bolsonaro also criticised the decision, describing it as politically motivated and accusing Lula of acting out of desperation ahead of the election. Those remarks were part of Bolsonaro’s campaign response to the government’s decision.
The executive measure is not yet permanent. It must receive approval from Brazil’s Congress within 120 days to remain in force.
Source: AFP
