Lula Bans Online Betting in Brazil Days Before Election

Brazilian President Luiz Inacio Lula da Silva has taken action to shut down the country's regulated online betting market, signing a provisional measure just nine days before the first round of the presidential election on October 4. The measure, effective immediately, prohibits fixed-odds betting, including sports betting and online games, and affects users who can no longer make new deposits.

Users have until October 5 to withdraw their balances, and betting websites and applications are scheduled to go offline on October 6. Congress has 120 days to approve the measure for its continued enforcement. The government argues the ban aims to combat gambling addiction, household debt, and public-health costs. However, critics view it as an "electoral measure" aimed at garnering political benefit.

The measure reverses a regulatory framework established by the Lula government two years ago, which licensed a nationwide regulated betting market in January 2025. The shutdown has significant implications for Brazil's top football clubs, which heavily rely on betting companies as major sponsors. With these sponsors facing prohibition, the clubs may face substantial financial repercussions. The ban has also drawn attention to Colombia's alternative approach to regulating online gambling.