September 28 – Brazilian President Luiz Inacio Lula Da Silva announced a blanket ban on gambling ahead of the South American country’s presidential election, sparking uproar among soccer clubs.
On Friday, Lula signed an interim order that “bans all sports betting and online casinos.” The Brazilian president called the industry a “cancer” and blamed it for financial losses in Brazilian households. “We will not allow gambling companies to profit at the expense of the income and lives of Brazilian families,” Lula said.
The provisional order follows the legalization of gambling in Brazil in 2018, but even then the industry continued to operate in a gray area. After Covid-19, online sports betting exploded. Since last year, betting operators required a Brazilian license to operate in Brazilian territory and offer their services. Controversial bookmaker 1XBet was the first to be kicked out before finding a way back.
Lula also separately signed a bill to establish criminal offenses related to fixed-odds betting, which targets online sportsbooks. The government has given betting operators and punters until October 5 to withdraw existing funds. Congress must approve the measures within 120 days.
Brazil’s National Association of Games and Lotteries (ANJL) warned that the state would lose tax revenue and gamblers would migrate to illegal markets.
Lula’s measures are a blow to Brazilian club football. Globo reported that elite clubs generated $212 million from sports betting companies by 2025. The betting industry itself had revenue of 62.5 billion reais.
Rio giants Flamengo, who receive 268.5 million reais each season from Betano, said they had no plan B and in a statement pointed to the need for “legal certainty” and the “illegal market”. Flamengo previously operated its own internal betting platform Flabet, through which it offered odds on its own matches and odds on the next Pope, a violation of Brazilian law.
Flamengo said: “Brazilian sport must not be weakened by a decision that does not eliminate illegal activity or the market, while jeopardizing investments, jobs and commitments established under the same rules that the country itself established.”
Crosstown rivals Fluminense also complained. In an interview with CNN Brasil, the club’s president, Mattheus Montenegro, said: “Here, the financial impact exceeds R$ 100 million because, beyond the main sponsorship, it affects contracts such as boards and field shirts, which are manufactured six months in advance. It is a measure that raises serious concerns for the future of the club.”
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