Brazilian President Luiz Inácio Lula da Silva has ordered an immediate suspension of online betting and casino gambling, reversing a regulated market that began operating nationwide in January 2025. The measure comes nine days before Brazil’s October 4 presidential election, with Lula facing Senator Flávio Bolsonaro.
The order immediately prevents betting operators from accepting new deposits. Customers have until October 5 to withdraw funds from their accounts, while licensed betting websites and applications are scheduled to be blocked from October 6. Operators must return remaining customer balances between October 9 and October 14, including money that customers do not actively request.
The provisional measure takes effect immediately but requires congressional approval within 120 days to remain in force. The government is also preparing legislation that would establish criminal penalties for operating or promoting fixed-odds betting.
Finance Minister Dario Durigan defended the move by citing gambling-related harm. He said, “We are facing a public health issue involving online betting. It is a serious problem,” during the announcement.
Brazil Reverses Its Regulated Betting Market
Brazil opened the door to online betting in 2018 under Michel Temer. Lula later signed legislation in December 2023 establishing rules for the sector and authorizing online casino games alongside sports betting. Licensed operators began offering services nationwide in January 2025 after meeting regulatory requirements and paying concession fees.
The Finance Ministry estimates that Brazilian households spend around 60 billion reais ($11.57 billion) annually on online betting, generating roughly 10 billion reais in tax revenue.
The ban has drawn criticism from industry groups. The National Association of Games and Lotteries said more than 30 million gamblers could move to illegal websites and said it was “taking appropriate measures to overturn the provisional measure by taking the matter to court”.
The Brazilian Institute for Responsible Gaming also criticized the decision, saying: “Shutting down this market shortly after its implementation will have significant economic and legal consequences and will undermine the progress made in formalising and controlling an activity that already existed in the country.”
The groups have also warned about the loss of regulated safeguards for players if betting demand shifts to illegal operators.
Betting Industry Faces Immediate Shutdown
The decision could also affect international gambling companies with Brazilian exposure. JPMorgan identified Evolution, Allwyn, Entain and Flutter among listed groups with significant links to the market.
Brazilian football clubs have raised concerns over sponsorship revenue. Grêmio said betting companies had become “one of the main sources of revenue for sports”. The supplied reports state that Brazil’s main football clubs received 1.1 billion reais from betting companies in 2025.
Flávio Bolsonaro criticized the government’s action during a campaign event in Rio de Janeiro, calling it “populist, hypocritical and politically motivated”. He has also described the measure as an “electoral measure”.
Alongside the betting ban, Lula announced a household debt program. The government plans to spend 15 billion reais to restructure up to 150 billion reais in delinquent household loans through a November auction. The initiative targets debts overdue for two to 4.5 years.
The gambling suspension now leaves Brazil’s recently regulated betting market dependent on congressional approval and potential legal challenges.
Source:
“Brazil’s Lula bans online betting, unveils debt relief plan as reelection race tightens“, reuters.com, September 25, 2026