Brazil: Lula’s ban on online betting takes effect Monday amid football backlash and broad public support

Brazil’s ban on online sports betting and online casinos, announced by President Luiz Inácio Lula da Silva on Friday, is now in force after publication in the Official Gazette. The measure matters for high-risk PSPs because it covers digital betting and gambling, plus advertising, and still needs Congress to ratify it within 120 days.

1. Lula announced the ban at a political event in São Paulo, calling it “hard, drastic and necessary.” He said the move is meant to help families burdened by gambling debts and to reduce gambling addiction among Brazilians.
2. The decree is described by Lula as a “definitive ban” covering “all types of digital betting” and advertising by companies in the sector. It was adopted through a provisional measure, so it enters into force now but must still be approved by Congress, which has 120 days to decide.
3. Public support is strong: an AtlasIntel poll put support for the ban at 75% of the population, with especially strong backing among women.
4. Flávio Bolsonaro, the main opposition candidate, called the move an “electoral scam,” accusing Lula of announcing the ban just nine days before the vote on 4 October. He also said Lula’s government was the one that legalized online betting and then moved to prohibit it for electoral reasons.
5. Brazilian football clubs are in the middle of the fallout. At least 13 of the 20 teams in the top division currently have commercial agreements with betting companies, worth an estimated US$ 200 million a year in total. Flamengo said the ban hits Brazilian sport “in full,” while Fluminense asked for a transition period so clubs can adjust to the end of sponsorships.

Industry groups are warning about the predictable outcome of a ban: traffic moving to unlicensed operators. The National Association of Games and Lotteries (ANJL), the Brazilian Responsible Gambling Institute (IBJR), and the 85 licensed companies said in a joint statement that “the ban does not end betting in Brazil, but the protection of those who bet.”