Brazil has moved to ban online casinos, betting and games such as the popular “Tigrinho” game, in a measure introduced by President Luiz Inácio Lula da Silva’s government to tackle gambling addiction and rising household debt. The move is expected to leave Série A clubs with a R$1 billion hole in sponsorship revenues.
The provisional measure (MP) was signed by the Brazilian president on Friday, just nine days before the first round of the country’s elections.
The measure takes effect immediately, but still needs to be approved by the Chamber of Deputies and the Senate to become permanent law, a process that could take up to 120 days.
“From today onwards, no more money can be deposited into betting sites in the country. The sites will remain available so that bettors can withdraw their remaining balances until 11:59 p.m. on October 5,” Finance Minister Dario Durigan said.
What does the new law mean?
From midnight on October 6, app stores, internet service providers and CGI.br, Brazil’s Internet Steering Committee, will be required to block casino and betting websites and apps.
The measure also has major implications for advertising. New advertisements from betting companies will be banned from the moment the provisional measure is published.
Betting companies will subsequently have until 11:59 p.m. on October 5 to remove existing advertising and promotional campaigns. The same deadline applies to the removal of betting brands from sponsorship agreements.
Companies that fail to comply with the new rules will face heavy fines.
Betting was legalized in Brazil in 2018, with legislation requiring the sector to be regulated within two years, with the deadline extendable by a further two years.
However, regulation did not materialize by the end of 2022 and only began to take shape in 2023, during Lula’s third term in office.
Brasileirão clubs face R$1 billion sponsorship hit
Football will be among the sectors most affected by the betting ban. Fourteen of the 20 clubs in Brazil’s top flight have sponsorship agreements with betting companies, generating more than R$1 billion last year and accounting for 36% of these clubs’ marketing revenues.
Among the clubs most exposed are Flamengo, Corinthians, Palmeiras and São Paulo. In recent days, the four clubs published a manifesto titled “Is this the end of Brazilian football?”, opposing the betting ban and calling instead for stronger protections for bettors and their families.
- Flamengo: R$220 milion
- Corinthians: R$150 million
- Palmeiras: R$100 million
- São Paulo: R$90 million
- Atlético Mineiro: R$60 million
- Fluminense: R$58 million
- Botafogo: R$55 million
- Cruzeiro: R$50 million
- Vasco: R$50 million
- Santos: R$35 million
- Vitória: R$20 million
- Remo: R$12 million
- Chapecoense: R$10 million
- Grémio: undisclosed
Source: UOL
What is the impact on households?
Lula has pushed the measure as an attempt to curb rising household debt linked to betting.
“It is not right to spend what you do not have trying to win what does not exist,” the president said during a campaign event in Recife.
A study by Comsefaz, Brazil’s National Committee of State and Federal District Finance Secretaries, published in August, estimates that betting companies took R$62.5 billion from Brazilian household budgets in 2025, equivalent to around 0.68% of disposable income.