Rio de Janeiro, Oct 6 (EFE).- Sports betting platforms and online casinos, along with all their advertising, went offline on Tuesday in Brazil, 11 days after President Luiz Inácio Lula da Silva ordered their prohibition due to their impacts on public health and household debt.
On Sep. 25, nine days before the elections, Lula announced the ban on sports betting and online casinos, comparing them to «a cancer.» The measure took effect that same day, but allowed until October 6 for a complete phase-out.
Enacted via a provisional decree, the ban will require Congressional approval within a maximum of 120 days to remain in force.
On Tuesday, online sports betting platforms, online casinos operating in Brazil were disabled, and all advertising campaigns were suspended.
Direct pushback from industry, soccer clubs, and political leaders
Reaction to the measure was immediate. Associations representing betting houses in Brazil warned that the ban will encourage an underground market where users will have no protection; however, the government has promised to step up enforcement to shut down illegal platforms.
At the same time, the decision triggered major pushback from soccer clubs. Since their legalization in 2018, online betting companies had become the largest sponsor of Brazilian soccer, featuring on most club jerseys and sponsoring tournaments, stadium naming rights, and television broadcasts.
At least 13 of the 20 teams in Brazil’s top division had commercial deals with a combined estimated value of around 1 billion reais (about 200 million dollars) annually. Flamengo, the country’s most popular club, warned that the ban «directly impacts» professional soccer, youth academies, women’s teams, and even Olympic sports.
Political opposition was equally swift. Flávio Bolsonaro, the leading opposition candidate, accused Lula of committing «electoral fraud» by announcing the ban just nine days before the elections, blamed him for the expansion of online betting, and questioned why the measure was enacted through a provisional decree.
Legal appeals and government enforcement on heavy financial stakes
Seeking legal recourse just three days after Lula’s announcement, industry companies petitioned the Supreme Court to suspend the ban, arguing «irreversible effects» and stating that the veto «frustrates the acquired rights of operators who, in good faith, believed in the state’s regulatory promises» under the 2023 law that granted permits to the companies.
Alongside legal challenges, the government initiated an aggressive crackdown. That same day, authorities took down 506 websites for offering sports betting without authorization to «disrupt» access to illegal platforms.
By September 29, the government reported requesting the blockage of 5,209 illegal betting sites and over 2,000 social media profiles since the ban was announced.
Online betting was originally legalized in 2018 under Michel Temer’s administration, but regulations were only finalized under Lula’s government, which charged 30 million reais (6 million dollars) per five-year operating license.
Prior to the ban, Brazil had 85 companies licensed by the Ministry of Finance, some foreign-owned, operating between 188 and 193 authorized platforms nationwide.
In 2025 alone, these platforms processed over 220.6 billion reais (around 44.3 billion dollars), and that same year, the government collected nearly 9 billion reais (1.8 billion dollars) in taxes from the sector. EFE
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