Lula Signs Provisional Measure to Prohibit Online Betting and Gaming in Brazil

President Luiz Inácio Lula da Silva has signed a provisional measure that immediately prohibits online sports betting and casino gaming across Brazil. The executive order reverses the 2023 legislation his administration enacted to authorize these activities, which had permitted licensed operators to function nationwide since January 2025. It takes effect at once but requires congressional approval within 120 days to remain in force.

The announcement came as Brazil enters the final stretch of its presidential campaign, with the first round of voting scheduled for October 4, with opinion surveys showing Lula in a close contest against Senator Flávio Bolsonaro. As reported by World Casino News, officials tied the prohibition to household debt pressures and gambling-related social harm.

Official Justification Focuses on Public Health and Financial Strain

Finance Minister Dario Durigan stated: “We are facing a public health issue involving online betting. It is a serious problem.” Finance Ministry figures show consumers spend approximately 60 billion reais annually on online betting, producing around 10 billion reais in tax revenue.

Lula has used stronger terms, describing the industry as a “cancer” and stating: “We won’t allow betting companies to profit at the expense of Brazilian families’ income and lives.” Polls reflect divided but largely favorable views toward restrictions, with roughly three-quarters of Brazilians supporting a full prohibition and 59.9% backing a ban on internet gambling.

Tight Closure Timeline Prompts Warnings from Operators and Clubs

Customers may withdraw account funds until October 5, after which app stores and network providers will block betting sites starting October 6. New deposits are barred immediately. Licensed companies receive no refunds on authorization fees already paid, and pending market-entry applications are halted.

Flávio Bolsonaro labeled the step “populist, hypocritical and politically motivated.” The National Association of Games and Lotteries (ANJL) warned that more than 30 million gamblers could shift to illegal platforms. The Brazilian Institute for Responsible Gaming (IBJR) noted that demand would continue and called for improved regulation over outright elimination of the legal market.

Grêmio and other football clubs expressed alarm, citing 1.1 billion reais in sponsorship revenue from betting companies during 2025. The club stated that the ban “will not only be an open door for illegal betting, but a fatal blow to Brazilian football, leading many clubs to insolvency.” The order further ends related advertising, sponsorships and payment processing outside of wind-down activities.

Reporting: World Casino News

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