Brazil bans sports betting as football clubs face sponsorship uncertainty

Brazilian President Luiz Inácio Lula da Silva signed an order on Friday, September 25, banning fixed-odds betting, a decision with consequences for football sponsorship. The Associated Press reported that the provisional measure takes immediate effect, although Congress must approve it within 120 days for it to remain in force.

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Before the announcement, leading Brazilian football clubs had raised concerns after betting companies reportedly warned that sponsorship agreements would end immediately if a ban was introduced, according to AP. Those warnings describe the potential impact on club finances; they do not establish which individual contracts have since been terminated or how much any club will lose.

Brazil’s Health Ministry said the measure covers sports betting and online games offered through physical and digital channels, including state and Federal District authorisations. Other lottery categories already permitted by law are excluded. Companies have until October 5 to remove advertising and sponsorship material displayed in physical locations and outdoor advertising.

The ministry’s published timetable also sets out the transition for customers. New deposits were prohibited from September 25, while users have until 11:59 p.m. on October 5 to withdraw their balances voluntarily. Betting websites and applications are scheduled to go offline from October 6. Those dates separate the immediate restrictions on deposits from the later shutdown of access.

Operators must report remaining customer balances to financial institutions on October 7 and 8, with bank repayments scheduled for October 9 to 14. Where banks cannot complete a repayment, Caixa Econômica Federal is to receive the funds and arrange their return from October 14. The ministry also said finance and justice authorities would coordinate action against illegal sites.

Lula said the intervention was intended to address household indebtedness, AP reported. His government has separately drafted legislation to create betting-related criminal offences, including promoting the activity and using personal information to recruit customers. The ban follows an earlier regulatory approach: Lula signed legislation in December 2023 to regulate and tax betting companies. The new criminal provisions remain a legislative proposal, distinct from the provisional ban already announced.