Brazil's government prepares betting ban; major football clubs mobilize against it

Brazil's federal government is preparing a provisional measure (MP) to prohibit online gambling and restrict sports betting, according to reporting from September 16–17, 2026. The measure, which could be announced within days, would effectively ban online casino games—a major revenue source for betting operators. While the final text is still being finalized, initial government guidance indicated a broad prohibition, though some officials within the administration are proposing narrower restrictions targeting specific games such as Tigrinho.

President Luiz Inácio Lula da Silva has publicly criticized betting as a disease and source of family debt, citing meetings with affected households. He stated: "We are making decisions and we will soon announce the decision we will take in relation to this because it is a disease, not a game. It is the inducement of innocents to an addiction." The proposed measure aims to address social harms, especially among vulnerable populations, and could improve the government's approval rating ahead of the 2026 elections.

Major Brazilian football clubs—including Flamengo, Palmeiras, São Paulo, Corinthians, Botafogo, Vasco, Fluminense, and Cruzeiro—published a joint manifesto on September 17 opposing the prohibition. The statement, coordinated across state football federations, warned that betting restrictions could constitute "the end of Brazilian football." Clubs argue that regulated betting has become a primary revenue source for teams across all levels, including lower-division and interior clubs with limited commercial capacity. Thirteen Série A clubs currently hold master sponsorship contracts with betting companies, and the sector estimates total annual betting-related sponsorship to Brazilian football at over R$ 1 billion. Broadcasting companies also derive significant revenue from betting company advertising.

Betting operators are evaluating legal challenges to the measure, arguing that broad prohibition would push bettors toward unregulated platforms operating without registration or tax compliance. The government has collected approximately R$ 10 billion in taxes from online gaming through July 2026. Clubs and betting operators contend that targeted measures—such as restrictions on specific games, advertising limits, or time-and-place restrictions—would address social concerns while preserving market viability. Representatives of both sectors attempted to engage the government but reported unsuccessful contact.