Brazil's president, Luiz Inácio Lula da Silva, signed a provisional measure in São Paulo on September 25 to end fixed-odds betting nationwide, a decision reported by the Associated Press on September 26. The measure covers sports betting and online games and takes effect as the country approaches a presidential election.
The order prohibits the operation, offering, intermediation and advertising of fixed-odds bets. According to Brazil's Justice Ministry, customers can no longer add money to betting accounts. They have until October 5 to withdraw remaining balances; betting websites and apps must become unavailable on October 6.
The ministry says operators must provide banks with individual customer balances after the shutdown, and banks are due to return outstanding funds from October 9 to 14. New betting advertising and sponsorship contracts are barred immediately, while material contracted earlier may remain until October 5. Brazilian football clubs have warned that the loss of betting sponsorships could hurt their finances, AP reported.
Brazil authorized fixed-odds sports betting in 2018 and adopted a framework to regulate and tax operators in 2023. The Health Ministry says 85 operating licenses have been granted at 30 million reais each, totaling 2.55 billion reais in fees. The new measure ends those authorizations after a transition period and says operators are not entitled to compensation for lost business or repayment of license fees.
Lula's government says the ban is intended to address household debt and gambling-related harm. It cites a study by the Institute for Health Policy Studies estimating the annual social cost of gambling in Brazil at 38.8 billion reais. AP says analysts estimate annual sports-betting revenue above $4 billion. Opposition presidential candidate Flávio Bolsonaro has characterized the decision as an election measure, according to AP.
The government has separately sent Congress a bill proposing criminal penalties for running or promoting fixed-odds betting and for using personal data to recruit bettors. Those penalties are proposals, not part of the ban already in force. Congress must approve the provisional measure within 120 days for it to remain effective; in the meantime, authorities and banks face the task of closing platforms and returning customers' money.
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