Brazilian president Luiz Inácio Lula da Silva signed an emergency decree banning online betting in the country. The measure took effect immediately, prohibiting operators from accepting player deposits.
Bettors have until 5 October to withdraw funds. If a player does not request a withdrawal, operators must return the money to registered accounts between 9 and 14 October. All licensed sites will be blocked from 6 October. Operators must process refunds through partner banks even if players miss the withdrawal window.
Finance minister Haddad Duriñan announced the decision, stating that measures to regulate the industry and protect families from debt proved ineffective. Lula said online betting destroys household budgets and criticised football clubs' dependence on bookmaker sponsorship. The government intends to shut down all betting sites, with reports accepted through a state portal.
The government will submit an urgent bill to congress criminalising the bookmaking business. Operating or promoting betting would carry four to six years in prison plus a fine. Payment institutions processing transactions would face two to four years.
Nearly 90 companies obtained licences after paying 30 million reais ($5.8 million) each. Operators are preparing lawsuits seeking refunds of licence fees, compensation for investments and lost profits. The National Association of Games and Lotteries (ANJL) warned of billions of dollars in lost tax revenue, thousands of lost jobs and players moving to the illegal market. The association is already taking legal action to overturn the decree, calling the ban an unprecedented move for electoral purposes ahead of the presidential race. The Brazilian Institute for Responsible Gaming (IBJR) said closing the market immediately after legalisation will trigger economic and legal consequences.
