Brazilian soccer clubs and sportswear retailers have received a small reprieve. A new update will allow shirts bearing betting-related brands already manufactured before the government’s gambling ban to remain in circulation. This clarification follows President Luiz Inácio Lula da Silva’s Provisional Measure No. 1,394, which forced betting websites and apps in Brazil to cease their operations from October 6.
The Exemption Applies Only to Shirts
Lula’s update clarified that the sale of stock produced under the old rules does not classify as a new advertising or sponsorship activity. This provision applies to manufacturers, distributors, retailers, and stores holding shirts that were legally produced before the recent ban. However, creating new shirts with betting logos remains prohibited, as do advertising campaigns, promotions, and influencer marketing.
This clarification came after a letter from sports trade association ÁPICE seeking guidance on existing stocks. Notably, the provision does not exempt match kits, training uniforms, stadium advertising, and social media activity. These areas fall outside the specific scope of the guidance. Violating parties may face punishments under Brazil’s consumer protection system.
Industry figures welcomed the decision, saying that allowing existing shirts to reach customers was a practical solution. Products were already manufactured, taxes paid, and retailers were ready to put the products on shelves. Destroying thousands of legally produced shirts would have made little sense, as clearing existing stock is not the same as approving new sponsorship deals.
Sports Clubs Remain Highly Concerned
The concession follows a much larger financial problem for Brazilian soccer caused by the gambling ban. The country’s top-tier Serie A clubs earned roughly 1 billion reais ($200 million) in direct advertising revenue from betting firms in 2025. This figure was 67% higher than the previous year and represented nearly 10% of the clubs’ recurring revenue.
However, the broader impact could be greater. Gambling sponsors also pay for stadium advertising and broadcasting agreements, causing more financial strain for clubs. According to Flamenco president Luiz Eduardo Baptista, the club could lose 400 million reais ($80 million) after the ban, potentially leaving it unable to meet some of its obligations for 2027.
While soccer federations have warned about the gambling ban’s broader effects, President Lula has shown little sympathy, arguing that clubs can find alternative revenue sources. Betting companies have also challenged the ban in Brazil’s Supreme Federal Court, contending that such a rapid shift was unnecessary. The ongoing general elections could also lead to a potential reversal, leaving the situation unclear.