Lula bans online sports betting in Brazil 9 days before the election and gives apps until October 5 to shut down

Brazil’s President Luiz Inácio Lula da Silva has ordered a provisional ban on online sports betting in Brazil, with the measure taking effect immediately and needing Congress approval within 120 days to become permanent. For PSPs, acquirers, and operators, the important detail is not the election drama; it’s the cutoff: bettors must withdraw funds by 23.59 on October 5, and betting apps will be blocked on October 6.

1. The announcement came on Friday, 9 days before Brazil’s presidential election, where Lula is seeking another term against Senator Flávio Bolsonaro. The latest polls reportedly show a tight race, and the timing makes the betting ban part regulation, part campaign grenade.
2. The government said the move is provisional and must be approved by Congress within the next 120 days to become definitive. Until then, it applies immediately. Minister of Economy Dario Durigan announced that “from today, no more money can be placed on betting sites in the country.”
3. Lula also set a deadline for withdrawals: users must recover their funds from the apps before 23.59 on October 5, one day after the presidential election. On October 6, the apps will be blocked. For operators, that is the practical shutdown date, not just a political statement.
4. Brazil had already approved the Betting Law in December 2023, which regulated the activity. That matters because the current move does not erase the regulatory framework; it suspends access to the online betting apps under a provisional measure.
5. The political backlash was immediate. Flávio Bolsonaro called the measure “a new scam by Lula’s government” and argued that the administration legalized what had previously been a criminal offense. He also said Lula had calculated the move to raise 20.000 million reais and cover a budget hole.

For high-risk payment providers, Brazil is not a sideshow. Lula said betting has become a “disease” in a country where eight out of ten Brazilian families face some form of debt, according to data published in August by the National Confederation of Commerce. A joint study by Brazilian states said betting absorbed about 13.000 million dollars from household income in 2025. The industry is visibly embedded in Brazilian football too: Neymar and Vinícius Junior are among the most prominent advertising faces, and 13 of the 20 first-division clubs have a betting company as their main sponsor.