Brazil’s Licensed Gambling Operators Begin Immediate Shutdown Under Lula da Silva’s Prohibition
Operators must immediately shut down Brazilian gambling websites and apps from October 6 under Lula da Silva’s ban, with structured refund processes through October 14. ANJL and IBJR appealed to Supreme Court Minister Luiz Fux over disruptions to 100 million daily visits and transition duties. The ban coincides with elections where Lula trails Bolsonaro 45.16% to 47.03%.
SCCG Take — This abrupt reversal underscores regulatory risk in Brazil, requiring operators to maintain precise compliance and orderly wind-down capabilities in volatile jurisdictions.
Following Brazil President Lula da Silva’s provision to ban all legal gambling, previously licensed operators must take all their websites and apps down starting 6 October.
In addition, throughout 7 October and 8 October, companies must provide banks with all details about the net amounts still held in bettors’ accounts so that balances can be refunded accordingly. Bettors had until 5 October to withdraw the funds themselves. Those who could not do it in time will need to wait for the banks and payment providers to issue the refunds between 9 October and 14 October.
The government is now redirecting all visitors to the brasilsembets.br page, which is used as a placeholder to signal that a gambling website is illegal.
Trade Bodies Appeal to Supreme Court Minister Luiz Fux
Operators are not happy with this, and neither are the leading trade bodies of the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gambling (IBJR). They have now directly appealed the decision to Supreme Court Minister Luiz Fux, noting that it could have an effect on around 100 million visits per day.
Their main argument is that gambling companies still have responsibilities even after the prohibition, such as processing refunds and keeping all systems and customer support services working during the transition period, which could be hampered by visitors being automatically redirected to another landing page.
Lula da Silva’s provision to end licensed gambling came into force on 26 September, just over two years after the President himself signed the legislation into law. Critics have highlighted the coincidental timing with the currently ongoing Presidential elections, accusing Lula da Silva of trying to gain more votes as he goes against main rival Flavio Bolsonaro.
However, if this was the case, it seems like the effects haven’t been so impactful, with Lula (45.16%) currently behind Bolsonaro (47.03%) after the conclusion of the first voting round. The second round will take place in three weeks, on 25 October.
This development was reported by SBC News.
Reporting: SBC News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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