Lula’s Sports Betting Ban Faces Immediate ‘War’ in Brazil’s Congress
President Lula's Provisional Measure banning fixed-quota sports betting and online casinos is in effect but faces strong resistance and potential rejection in the National Congress.
A new Provisional Measure (MP) signed by Brazilian President Luiz Inácio Lula da Silva that bans fixed-quota sports betting and online casinos in the country has immediately ignited a fierce political battle in the National Congress, with the Executive branch bracing for an intense fight to keep the measure intact. Provisional Measure No. 1.394, signed on September 25, took effect immediately, but must be approved by the legislature within 120 days to remain permanently in force.
The move effectively shut down a sector that was only fully regulated in January 2025 and had rapidly become a prized growth market for international online gaming operators. The MP prohibits the operation, offering, intermediation, and advertising of fixed-odds betting, citing public health concerns and the goal of tackling problem gambling. The government has already forecast a “war” in the legislature, as lawmakers with ties to the betting industry are expected to pressure for the total rejection of the ban or a substantial amendment that would grant operators a path to continued activity.
The sudden ban has thrown Brazil's sports landscape into chaos, immediately affecting its major football clubs. Thirteen of the 20 clubs in the top-flight Série A league currently carry a betting company as a primary shirt sponsor, with contracts collectively valued at over R$1 billion. Clubs and state federations—including the prominent São Paulo Football Federation (FPF)—have convened emergency meetings and are seeking dialogue with the government to address the immediate loss of sponsorship revenue, which the ban requires to be removed quickly.
For users, the Provisional Measure mandates an immediate halt to deposits and gives users until October 5 to voluntarily withdraw their funds from the platforms, after which the sites will be blocked and companies must coordinate the return of remaining balances. Alongside the MP, the government sent a complementary bill to Congress that would establish new criminal offenses related to online betting, including penalties of four to six years in prison for operating illicitly and two to four years for promoting the activity.
As a Provisional Measure, the ban has the force of law now, but the political action shifts to the National Congress. The legislature has up to 120 days to analyze and vote on MP 1.394. If it fails to act within that timeframe, the measure will lapse, potentially returning the sector to a state of complete legal ambiguity. The fate of the Provisional Measure will hinge on the intense negotiations expected between the Executive and the powerful block of opposing lawmakers and lobbying groups over the coming weeks.
What it touches
The regulatory shockwave immediately impacted major international gaming operators, many of whom had invested heavily in the recently regulated Brazilian market. International firms such as Flutter Entertainment and Entain warned their investors of millions in revenue and core profit hits should the ban be upheld by Congress, highlighting the substantial exposure the global online gaming sector had accrued in the country.
Related coverage
Court Delay on Brazil Shorter Workweek Eases Corporate PressuresSupreme Court Justice Luiz Fux halts a virtual trial on Brazil's 6x1 to 5x2 workweek transition, resetting votes but leaving a temporary December start date active.
US Tech Investors Track Brazil Semiconductor Industry PushBrazilian President Lula proposed integrating the nation's critical minerals with the Philippine chip sector to create new South-South tech supply chains.
Senator's Escape to Florida Heightens Brazil Geopolitical RiskSenator Flávio Bolsonaro's sudden flight to Florida after his election defeat defies a Supreme Court passport order and escalates political tensions.