Brazilian President Luiz Inácio Lula da Silva has signed a provisional measure banning fixed-odds betting across the country, placing online sports betting and internet-based gambling at the centre of a major policy shift just days before Brazil’s presidential election.
The measure, announced on September 25, prohibits the operation, offering, intermediation and advertising of fixed-odds betting, commonly known in Brazil as “bets.” The government said the restriction applies to both sports betting and online games and extends to operations authorised at state and district levels. Existing lottery activities that are separately authorised by law are not covered by the ban.
Under the government’s timetable, betting platforms are immediately prohibited from accepting new deposits. Customers have until October 5 to withdraw funds held with the platforms. From October 6, betting websites and applications are scheduled to be taken offline, while financial institutions will begin the process of returning remaining customer balances in the following day.
The decision comes only nine days before the first round of Brazil’s presidential election, scheduled for October 4. Lula is seeking another term, and the timing has placed the gambling policy within a highly contested electoral environment. Reuters reported that opinion polls have shown Lula in a close contest with Senator Flávio Bolsonaro, the son of former President Jair Bolsonaro.
Lula's government has presented the measure primarily as a response to concerns about household debt and the social effects associated with betting. The president has repeatedly criticised the rapid expansion of betting platforms and has argued that families have become increasingly exposed to gambling through mobile phones and other digital devices.
The policy nevertheless faces economic and legal questions. Brazil introduced a regulatory framework for the betting industry less than two years ago, and companies that obtained licences under that system could challenge the government's decision. Some officials have also expressed concerns about the loss of tax revenue that could result from eliminating the regulated market.
The country's football sector is also affected. Betting companies have become significant sponsors of Brazilian football clubs, making the withdrawal of betting advertising and sponsorship a potentially important financial issue for the sport. Lula has previously defended restrictions on betting while arguing that football itself would continue to thrive without sports-betting companies.
Because the measure is a provisional executive order, its long-term status depends on Brazil's Congress. According to reporting by the Associated Press, the order takes effect immediately but must receive congressional approval within 120 days to remain in force. The government has also proposed legislation that would create criminal offences related to certain betting activities and strengthen enforcement against illegal gambling operations.
The ban therefore represents more than a regulatory change for Brazil's rapidly expanding betting industry. It affects consumers, financial institutions, advertisers, sports organisations and companies that had previously operated under government-issued authorisations. Its implementation and the congressional process that follows will determine how permanently Brazil changes its approach to online betting.