Brazil lets pre-ban betting sponsor shirts stay on sale after October 6 gambling shutdown

Brazil has given clubs and retailers a narrow exception after its gambling shutdown: shirts that were already manufactured with betting-related branding before October 6 can still be sold. For PSPs and merchants in high-risk verticals, the useful part is not the headline, it is the boundary: existing inventory gets a pass, but new sponsorship, promotion, influencer marketing, stadium ads, and broadcast deals do not.

1. President Luiz Inácio Lula da Silva’s Provisional Measure No. 1,394 forced betting websites and apps in Brazil to stop operating from October 6. A later clarification says the sale of stock produced under the old rules does not count as new advertising or sponsorship activity.
2. The exemption is limited to shirts. It applies to manufacturers, distributors, retailers, and stores holding shirts that were legally produced before the ban. New shirts with betting logos remain prohibited, along with advertising campaigns, promotions, and influencer marketing.
3. The clarification came after a letter from sports trade association ÁPICE asking for guidance on existing stock. The government also made clear that match kits, training uniforms, stadium advertising, and social media activity are outside the scope of the exemption.
4. Violations can be punished under Brazil’s consumer protection system. Industry figures said the decision was practical because the shirts were already manufactured, taxes had been paid, and retailers were ready to sell them; destroying that stock would have served no commercial purpose.
5. The bigger problem for Brazilian soccer is still the money. Serie A clubs earned roughly 1 billion reais ($200 million) in direct advertising revenue from betting firms in 2025, up 67% from the previous year and equal to nearly 10% of recurring revenue. Flamengo president Luiz Eduardo Baptista said his club could lose 400 million reais ($80 million), enough to put some 2027 obligations under pressure.

Betting firms have challenged the ban in Brazil’s Supreme Federal Court, while President Lula has argued that clubs can replace the lost income elsewhere. With general elections also in the background, the setup is classic Brazil: one narrow exemption for inventory, and a much larger fight over the business model still open.