Lula’s decree sends Brazil’s illegal betting count up 74% in 24 hours

Brazil’s online betting ban has had the fastest possible market reaction: according to Bet Legal data cited by SBC Noticias Brasil, illegal iGaming operators rose from 331 to 575 in a single day after President Lula’s provisional measure. For PSPs, acquirers, and banks, the signal is simple: when licensed rails disappear, unlicensed traffic does not.

1. On 26 September, illegal iGaming operators in Brazil reached 575, up from 331 the day before. That is an increase of 244 operators, or 74% in 24 hours, according to Bet Legal data shared by Amilton Noble, Executive Director of lottery tech provider Hebara.
2. The same dataset showed 102 illegal platforms on 21 September, meaning the count moved from 102 to 331 in four days, then to 575 by Saturday. Noble described the post-measure curve as evidence that “the illegal gang” was “lying down and rolling,” and warned that it would get worse.
3. The trigger was President Lula’s decision to prohibit regulated online gaming and betting operators, announced a week before the Presidential election. The source says the move shocked the industry and reversed years of efforts to build a safer environment for players.
4. Brazil’s licensed online betting market had only been live for just under two years, yet Blask data already placed it as the sixth-largest market globally by value, with potential to top the ranks by the end of the decade. That is the market being pushed back toward the shadows.
5. The political overhang matters because the Presidential election is set for 4 October, and the text says the prohibition could be reversed if Congress does not shoot down Lula’s provisional measure in the coming weeks. The Bolsonaro family has historically supported sports betting, which keeps the policy outcome open.

For high-risk payment providers, the operational takeaway is not subtle: a change in licensing rules can move demand from regulated operators to illegal ones within days, and Brazil is now a live example of that shift.