Brazil’s Online Gambling Ban: The Early Impact

He signed the provisional order on September 25, 2026, and called online gambling a “cancer”. He said families were gambling away money they needed for food and other essentials.

Lula is now dismantling a market he helped expand. Brazil legalised sports betting in 2018. Five years later, he signed the law allowing online casino games. Finance Minister Dario Durigan said the government’s earlier restrictions had done too little to protect families from gambling debt and addiction.

The Impact on Operators

Flutter Entertainment, an international gambling company, has stopped its Brazilian operations. The company expects a shutdown through December to cut its 2026 revenue by approximately $70 million and adjusted EBITDA by $20 million. It is considering an appeal.

Entain, a sports betting and casino group, kept its annual underlying EBITDA forecast of £910 million–£960 million. However, it now expects results near the lower end if the ban continues through December.

Football clubs also face uncertainty over sponsorship income. Flamengo and Betano have put their agreement on hold while they await legal developments. Betano has not sought to end the contract, although the change in law gives it that option.

Players have until October 5 to withdraw their balances. Authorities plan to block gambling websites and apps from October 6.

Illegal Sites Keep Operating

While licensed operators shut down, illegal sites continue to reach players.

Monitoring service Bet Legal detected 543 previously unidentified illegal gambling sites in the three days following the announcement. Its operator, Iron Security, clarified that discovery dates do not establish when sites began operating. Most domains it could date predated the ban.

Reports also reveal attempts to exploit the confusion. Estadão identified illegal sites impersonating brands including H2bet, Vaidebet and Novibet. One fake H2bet website displayed a supposed Finance Ministry approval seal. Influencers continued sharing links to illegal operators after Lula’s announcement.

These findings expose a problem for enforcement: licensed companies can stop operating while illegal sites continue reaching customers. By September 29, the government had requested blocks on 5,209 gambling websites. It also ordered app stores to remove 186 gambling apps.

The ban also faces a legal challenge. Industry associations ANJL and IBJR have asked the Supreme Federal Court to suspend it. Congress must approve the measure within its 120-day review period to keep it in force.

Before the ban, Brazilian authorities had already blocked more than 66,000 illegal gambling domains.