The regime of Luiz Inácio Lula da Silva advanced this Friday with the prohibition of sports betting and online casinos in Brazil, a decision that directly hits one of the main sources of commercial financing for Brazilian football and generated a strong reaction from the First Division clubs.
The measure was established through a provisional provision that took effect immediately and must be approved by Congress within the next 120 days to maintain its validity. Additionally, the regime is promoting a separate project to criminalize the use and promotion of these platforms, with penalties that could reach six years in prison.
Lula prohibited one of the main sources of funding for Brazilian football
The decision has particularly sensitive consequences for the Brasileirao. Betano is a sponsor of the country's main football competition, while currently 14 of the 20 teams in Serie A have betting houses as main sponsors.
During 2025, sponsorship contracts from betting companies reached around R$ 1.030 billion (USD 198.4 million) among the top-tier clubs and represented approximately one-third of all their commercial income from sponsorship.
Brazilian clubs faced Lula
The Brazilian president's offensive generated an unprecedented joint reaction from the main teams in the country. Corinthians, Palmeiras, São Paulo, Santos, Flamengo, Fluminense, Botafogo, Vasco, and Cruzeiro were among the institutions that warned about the economic risk of abruptly eliminating the market.
The clubs argue that a ban will not necessarily end betting, but could drive users to clandestine platforms in the black market that do not pay taxes and are not subject to state controls or age filters.
Flamengo was particularly critical of the decision and demanded legal security after companies paid for licenses, made investments, and signed long-term agreements backed by the framework established by the Brazilian state itself. Their main contract with Betano is around R$ 266 million annually, the largest sponsorship in the country's football.
Lula's regime defended the ban
Flavio Bolsonaro contrasts with his proposal for freedom to Lula's prohibitive and persecutory regime
Da Silva dismissed the warnings from the teams and asserted that Brazilian football can survive without that financing. Lula justified the measure by the impact of betting on indebtedness and stated that the activity particularly affects lower-income sectors.
The ban also comes a few days before the presidential elections, which added a political dimension to the conflict. Flávio Bolsonaro questioned the timing chosen by Lula and pointed out that it was the current government that finalized the regulation of the market during its mandate.
