Brazilian President Luiz Inácio Lula da Silva has signed an executive order banning online betting operations across Brazil, with licensed betting websites and applications set to be blocked from 6 October. The measure, announced on Friday alongside a new household debt relief program, reverses a regulatory framework that the government itself established less than two years ago and marks one of the most significant regulatory reversals in the global gaming sector.
The executive order covers both sports betting and online casino games, and takes immediate effect. App stores and network providers will be required to block betting websites and applications from 6 October, according to the announcement.
A Market Built and Dismantled in Under Two Years
The decision reverses the legal framework created under Law No. 14,790/2023, signed by Lula in December 2023, which established a comprehensive regime for fixed-odds betting and online gaming under the supervision of the Ministry of Finance’s Secretariat of Prizes and Bets (SPA). The regulated market formally opened on 1 January 2025, attracting dozens of licensed domestic and international operators.
According to figures cited in reporting on the announcement, approximately 85 companies held licenses, with 25.2 million bettors recorded in 2025 and losses of roughly R$9.95 billion (around US$7.1 billion) over the year. The government has framed the ban as a response to mounting gambling losses and their contribution to household debt pressures, as well as concerns over gambling addiction.
Political Timing and Industry Response
The announcement comes just over a week before the first round of Brazil’s presidential election on 4 October, in which Lula is seeking another term. The order requires congressional approval to remain in force, and its fate beyond the immediate enforcement date remains subject to legislative and potentially judicial review.
The political opposition has been critical of the move. Senator Bolsonaro described the measure as “populist,” reflecting broader concerns about the speed and timing of the decision.
For the industry, the immediate issues are financial and contractual. Betting companies have indicated they will seek compensation for the licenses they acquired under the regulated regime. Licensed operators have also invested in compliance infrastructure, local staffing, and regulatory technology since the market opened.
The ban also carries significant consequences for Brazilian sport. Betting companies have become the largest sponsors of the country’s football clubs, and industry representatives have warned that the withdrawal of sponsorship revenue would deal a substantial blow to club finances. The announcement follows separate local measures, including a betting advertising ban that cleared its first vote in São Paulo on 23 September, covering stadium boards, city buses, and public land.
Analysts have begun assessing the impact on listed operators with Brazilian exposure, and legal teams across the sector are expected to examine avenues for redress, including claims for license-related compensation. A further open question is whether prohibition will push bettors toward unlicensed offshore sites – a pattern that regulators in Brazil had previously worked to suppress, including the blocking of more than 11,500 unlicensed betting domains in February 2025.
