Brazil is preparing a decree to ban online casinos while keeping betting and sponsorships in place

The Brazilian government is drafting a decree that would ban online casino activity in the country, according to four anonymous sources cited by Reuters. For high-risk payment providers, the important part is not the headline ban itself, but the structure: betting would remain legal, while the casino layer that drives most operator economics would be cut out.

1. President Lula da Silva plans to sign the final text of the decree before the first round of the general election on 4 October, the sources said. The decree would not affect betting or sponsorship agreements with sports clubs and tournaments.
2. The catch is that almost all legal betting operators in Brazil also run online casinos. According to one source, casino operations generate 50—70% of operator profit, and those cash flows are what fund sponsorship of clubs and championships.
3. Brazil currently has 188 licensed betting operators. Officials acknowledge that banning online casinos while keeping betting in place would significantly reduce operator revenue, which would then hit government tax receipts.
4. Brazil’s Ministry of Finance said last year the budget collected almost 10 млрд reais ($1,95 млрд) in license fees and taxes from the gambling sector. If casino revenue is removed from the model, the payment and sponsorship economics around the licensed market change fast.