Brazilian President Luiz Inácio Lula da Silva has signed a provisional measure banning fixed-odds betting, known as “bets,” across Brazil, bringing a dramatic end to the country’s recently established regulatory framework for online gambling. The measure prohibits the exploitation, offering, intermediation and advertising of fixed-odds betting, including sports betting and online games.
The decision, signed by Lula in São Paulo on September 25, represents a major reversal of Brazil’s previous policy of regulating and taxing the rapidly expanding betting industry. The government says the move is aimed at protecting Brazilian families from debt and the social and health consequences associated with problematic gambling.
Lula has repeatedly raised concerns about the impact of betting on Brazilian households, arguing that gambling has become increasingly accessible through mobile phones and has moved directly into people’s homes. The government says the issue is no longer only an economic or entertainment matter. The Ministry of Health has described online betting as a growing public-health concern, citing links between problematic gambling, financial difficulties, family conflict and mental-health problems.
The shutdown comes less than two years after Brazil began implementing a federal regulatory system for licensed betting companies. Under the previous framework, authorized operators could legally offer fixed-odds betting while being subject to government supervision, taxation and consumer-protection requirements.
The new measure now reverses that approach. Licensed betting companies are prohibited from accepting new deposits, while their operations will be brought to an end under a government-established timetable. For millions of Brazilians who use betting platforms, the immediate question is what will happen to money remaining in their accounts.
Under the government’s schedule, bettors have until 11:59 p.m. on October 5, 2026, to voluntarily withdraw their available balances. From October 6, betting websites and applications covered by the measure are scheduled to go offline. Companies must then report remaining balances to financial institutions between October 7 and 8, with banks expected to return the funds to bettors between October 9 and 14.
The government says that if difficulties prevent banks from returning the money, Caixa Econômica Federal will receive the funds and arrange their return to bettors. The measure also affects the advertising ecosystem surrounding betting. Companies must remove advertising and sponsorship material within the deadlines established by the government, potentially affecting a sector that has become deeply connected with Brazilian football.
Betting companies have become prominent sponsors of Brazilian football clubs, competitions and broadcasts. Their logos have appeared on football shirts and across sports media, making the industry one of the most visible commercial forces in Brazilian sport. The government’s decision therefore has implications beyond gambling operators themselves. Football clubs, media companies, advertisers, influencers and other businesses that depended on betting sponsorship may face significant changes.
The government argues that protecting families is one of the central reasons for the ban. Earlier restrictions had already prevented beneficiaries of programs including Bolsa Família, BPC, Fies and debt-renegotiation programs from opening or maintaining accounts with licensed betting companies. The system used CPF information to identify people subject to those restrictions.
The government has now moved from restricting particular groups to eliminating the authorized fixed-odds betting market altogether.Brazil’s Health Ministry has cited data suggesting that the effects of problematic gambling extend beyond financial losses. According to the ministry, more than 28 million Brazilians had placed bets during the 12 months preceding a 2023 survey, while 10.9 million showed patterns classified as risky or problematic. The ministry also reported a substantial increase in health-service encounters related to pathological gambling and betting problems between 2018 and 2025.
The government has also announced plans to increase health support for people affected by problematic gambling. Health Minister Alexandre Padilha said the government intends to strengthen outreach and treatment, including mental-health services available through the public health system.
The betting industry and its supporters have raised a different concern: that eliminating the legal market could drive bettors toward illegal and offshore platforms. They argue that a regulated market gives authorities greater ability to monitor companies, identify users, supervise financial transactions and enforce consumer protections. A prohibition, they contend, could make illegal operators more difficult to control.
The government, however, says it intends to intensify the fight against illegal betting platforms. Finance Minister Dario Durigan said platforms that remain operating after the deadline would be treated as illegal and could face blocking and financial enforcement measures.
The government says its enforcement effort will involve agencies including the Ministry of Finance, Ministry of Justice, Federal Revenue Service, Federal Police and telecommunications regulator Anatel. The crackdown comes as authorities have already been targeting illegal betting advertising online. On September 24, the Ministry of Justice announced the removal of more than 1,300 Facebook pages and Instagram profiles used to promote irregular betting platforms.
Lula’s decision therefore represents a broad change in Brazil’s approach to online gambling: from regulation and licensing to prohibition and enforcement. The measure is provisional, meaning that it must proceed through Congress under Brazil’s constitutional rules for provisional measures. Its long-term future will consequently depend on the legislative process.
For now, however, the government’s timetable is clear. New deposits are prohibited, bettors have until October 5 to withdraw their balances voluntarily, and betting websites and applications are scheduled to leave the Brazilian market from October 6. Lula’s government is presenting the decision as a measure to protect families from the financial and social consequences of gambling. The president’s broader argument is that betting has moved beyond a conventional form of entertainment and become a problem that reaches directly into households through smartphones.
Brazil is now entering a new phase in its relationship with online gambling. After creating a legal framework for the betting industry, the government has abruptly reversed course and ordered the sector to shut down. The debate over what comes next — prohibition, regulation, illegal markets, consumer protection and the future of betting in Brazilian football — will now move to Congress, the courts, regulators and the wider Brazilian public.
