President Luiz Inácio Lula da Silva has signed a measure banning fixed-odds betting in Brazil, with the order taking effect immediately and betting platforms given a transition period to shut down.
Brazilian President Luiz Inácio Lula da Silva has signed an executive measure banning fixed-odds betting across the country, just days before Brazil's presidential election.
The measure, signed on September 25, 2026, prohibits the operation, offering, intermediation and advertising of fixed-odds betting, covering both sports betting and online games. It also applies to state and Federal District authorisations.
Brazil is scheduled to hold the first round of its presidential election on October 4, with Lula seeking another term.
The timing of the announcement has already generated political debate. Lula's main rival, Senator Flávio Bolsonaro, described the move as an electoral measure, while Lula's government says the ban is intended to address gambling-related debt and broader social and public-health concerns.
What Brazil's betting ban means
The new measure, formally issued as Provisional Measure No. 1,394, prohibits fixed-odds betting throughout Brazil.
Under the measure, the prohibition covers bets on real sporting events as well as online games whose results depend on future random events.
The measure also extends to betting operators based outside Brazil when they offer fixed-odds betting to people located in the country.
Other lottery activities already authorised under Brazilian law are not covered by the ban.
The government says the measure is intended to end the operation of the regulated betting market that was established less than two years ago.
Betting platforms given transition period
Although the prohibition takes effect immediately, betting operators have been given a transition period to wind down their operations.
According to Brazil's Health Ministry, no new deposits can be made into betting accounts from September 25.
Users have until October 5 at 11:59 p.m. to withdraw money from their accounts.
From October 6, betting websites and applications are scheduled to go offline.
Betting companies must then provide financial institutions with information about remaining customer balances between October 7 and 8. Banks are scheduled to return those balances to customers between October 9 and 14.
The measure also requires betting operators to remove advertising and sponsorship material by October 5.
Lula says betting is contributing to household debt
Lula has repeatedly criticised the growth of online betting in Brazil.
The president said the latest measure was necessary because of concerns about families becoming increasingly indebted through betting.
The government has also framed the issue as a public-health concern, pointing to gambling-related problems including financial difficulties, anxiety, depression, loss of control, sleep and mood problems, family conflict and social isolation.
Lula also criticised the industry during his address at the United Nations General Assembly earlier in the week, accusing betting companies of profiting from addiction.
The government says the ban is intended to address what it considers a growing social problem rather than simply regulate the betting industry.
Brazil had only recently regulated online betting
The decision represents a major reversal in Brazilian betting policy.
Brazil moved toward regulating and taxing online betting during Lula's current administration. In December 2023, Lula signed legislation establishing a regulatory framework for fixed-odds betting.
The regulated market subsequently became operational, with betting operators obtaining licences and paying fees to operate legally.
The latest measure now seeks to dismantle that framework.
Brazil's Health Ministry said 85 authorisations had been granted to betting operators, with each authorisation costing R$30 million. That means operators had collectively paid R$2.55 billion in authorisation fees.
Despite those payments, the new measure states that the termination of the authorisations does not create a right to compensation for lost future profits, investments or expectations of continued operations.
Betting companies could lose access to a major market
Brazil has become one of the world's major markets for online sports betting.
Reuters reported that analysts estimate annual sports-betting revenues in Brazil at more than $4 billion.
The sudden prohibition therefore has major implications for betting operators, sports organisations and other businesses connected to the industry.
Brazilian football has been particularly connected to betting companies through sponsorship and advertising.
Ahead of Lula's announcement, major football clubs warned about the potential financial consequences of an outright ban, after betting companies reportedly indicated that sponsorship arrangements could be terminated if the government prohibited the industry.
The impact on individual clubs will depend on their sponsorship agreements and how the government implements the ban.
Government plans stronger action against illegal betting
Lula's measure also establishes a framework for combating betting operators that continue to operate illegally.
Brazil's Finance Ministry and Justice Ministry will work to identify and block illegal betting websites.
The government says its existing monitoring system will be used to identify irregular platforms, after which Brazil's telecommunications regulator can block domains and authorities can pursue the removal of applications and restriction of payment methods.
The measure establishes an Institutional Committee for the Supervision and Combat of Illegal Betting, coordinated by the presidential Chief of Staff's office.
Companies or individuals who violate the restrictions can face penalties ranging from warnings to fines of up to R$2 billion for companies, as well as partial or total suspension of activities.
Government proposes criminal penalties
The government has also prepared a separate bill dealing with criminal offences connected to fixed-odds betting.
The proposed legislation would criminalise several activities, including operating fixed-odds betting, promoting betting or recruiting bettors, using personal information to recruit bettors, facilitating financial transactions for illegal betting operations and providing internet applications for fixed-odds betting.
Some of the proposed offences would carry prison sentences.
For example, operating fixed-odds betting could attract a proposed sentence of four to six years in prison, while promoting betting or recruiting bettors could carry two to four years.
The criminal legislation is separate from the provisional measure banning the betting industry.
Congress still has a role
Although Lula's measure has immediate legal effect, its long-term continuation depends on Brazil's Congress.
The provisional measure must receive congressional approval within 120 days to remain in force under the reported framework.
That means the future of Brazil's betting industry could still become the subject of political and legislative debate.
The political timing is particularly significant because the presidential election is scheduled for October 4.
Lula is seeking another term, while Flávio Bolsonaro is among the principal candidates challenging him.
Flávio has criticised the ban as politically motivated, but that is his characterisation of the measure. The government has presented the policy primarily as a response to gambling-related debt and public-health concerns.
Brazil's betting debate enters a new phase
The ban marks a sharp change for Brazil's betting sector.
The country moved from allowing and regulating fixed-odds betting to announcing its prohibition in less than three years. Operators that recently obtained government authorisations are now facing a timetable for winding down their businesses.
For bettors, the immediate issue is withdrawing funds before the October 5 deadline.
For betting companies, the next major question is whether Congress will maintain the prohibition and whether the industry will challenge aspects of the government's decision through legal or political channels.
For Brazilian football, the loss of betting sponsorships could create financial pressure for clubs that have built commercial relationships with betting companies.
And for the government, the challenge will be enforcing the ban while preventing bettors from simply moving to illegal or offshore platforms.
With the presidential election approaching, the policy is now both an economic and political issue in Brazil.
