Brazilian President Luiz Inacio Lula da Silva has announced a sweeping ban on sports betting platforms, days before the country heads to the polls in an election in which he is seeking another term in office.
The decision was announced on Friday by Finance Minister Dario Durigan at an event attended by Lula, as the government moved to halt deposits into licensed betting platforms operating in the country.
Sports betting has expanded rapidly in Brazil since the sector was formally regulated in 2023, with betting companies becoming major sponsors of football clubs and prominent advertisers across television, social media and other platforms.
Thirteen of Brazil’s 20 top-flight football clubs reportedly have betting companies as their main shirt sponsors, while leading footballers, including Neymar and Vinicius Junior, have featured prominently in betting advertisements.
The government said 85 betting licences had been issued, with each licence costing 30 million reais, equivalent to about $5.7 million, and stated that the fees would not be refunded.
Under the new measure, betting companies will also be prohibited from entering into new advertising agreements. Existing sponsorship arrangements are expected to end after October 6.
Durigan said that, from that date, betting would no longer have a legal presence through websites, applications or sponsorship deals in Brazil.
Lula defended the decision, arguing that the rapid growth of gambling had developed into a public health and financial problem. He said billions of reais had moved from Brazilian households into legal betting platforms.
The president also recounted speaking with a young man who had attempted suicide several times because of gambling addiction, describing the situation as one that required decisive government intervention.
However, the proposed ban has faced opposition from football clubs and representatives of the betting industry, who say the sector provides significant financial support to sports and contributes substantially to government revenue.
Flamengo, one of Brazil’s biggest football clubs, described the decision as a major setback for Brazilian sport. The club warned that the impact could extend beyond professional football to youth development, women’s football, Olympic sports and other competitions.
The National Association of Games and Lotteries, which represents licensed betting operators, also criticised the proposed prohibition. The association, alongside eight other industry groups, warned that banning legal operators could push gamblers towards unregulated platforms.
The groups further raised concerns over potential losses in tax revenue and employment. The betting sector reportedly paid 9.95 billion reais, about $1.73 billion, in federal taxes in 2025.
Meanwhile, Senator Flavio Bolsonaro criticised the decision, accusing Lula of introducing a politically motivated measure ahead of the election.
The government’s provisional measure will still require approval from Congress before the ban can become permanent law.
