Brazil’s crackdown on online betting has reached the Supreme Federal Court (STF), where football club representatives called on Tuesday for the government to reverse the measure, warning of a significant financial hit to the sport.

The government introduced the ban on online gambling, including the popular Jogo do Tigrinho (Fortune Tiger), at the end of September, aiming to tackle gambling addiction and the sharp rise in household debt. The provisional measure also prohibited advertising by betting companies, including sponsorship deals in football.

As a result, clubs have already removed betting companies from their shirts. The ban on betting advertising is expected to cost Brazil’s Série A clubs more than R$1 billion in revenue.

The public hearing at the Supreme Federal Court also included representatives of President Lula da Silva’s government, including Justice and Public Security Minister Wellington César and Attorney General of the Union Jorge Messias.

“Betting companies have been causing a silent erosion of Brazilian families,” Jorge Messias said, according to Brazilian media. “The damage does not end when the bet is over. It remains inside the home and extends beyond the financial impact,” he added.

Representatives of Flamengo and Fluminense warned that clubs had signed sponsorship agreements that were suddenly put at risk by the provisional measure.

They also stressed that the financial impact could threaten jobs and investment not only in men’s professional football, but also in Olympic sports, youth development programmes and women’s football.

Fluminense president Matheus Montenegro pointed out that other countries had introduced transition periods when implementing restrictions on betting advertising.

“In Belgium, there was a 56-month transition period for betting advertising. In the United Kingdom, 36 months. In Spain, 12 months. In Italy, 10 months. In Brazil, just 10 days. There has been no other market in the world where betting advertising was restricted within 10 days,” he said.

Botafogo representative Udo Secklemann argued that banning betting companies does not necessarily mean Brazilians will stop gambling, as they could turn to illegal markets.

“What makes us believe that Brazil will be able to curb the growth of betting with just over a month of prohibition under the provisional measure? What empirical evidence has been presented in the court proceedings, or at any point, of an international example on which Brazil is relying to tackle gambling addiction, household debt and the illegal market?” he asked.

The provisional measure must still be approved by Congress to become permanent, although its provisions have immediate effect.

The case is being overseen by Supreme Court Justice Luiz Fux, who is also handling other proceedings concerning the operation of betting companies in Brazil.

Before reaching a decision, Fux called a public hearing to hear from stakeholders both in favour of and opposed to the operation of betting companies in the country.