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Brazil’s Betting Companies Protest Lula’s Ban with Football Board Messages

by Sienna Marques
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Brazil's Betting Companies Protest Lula's Ban with Football Board Messages

In a show of solidarity, several licensed betting companies took their protest to Brazilian football stadiums over the weekend, highlighting the repercussions of a recent ban on online betting. During matches on Friday and Saturday, companies affiliated with the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) utilized the advertising boards around the pitch to share messages against the ban. Among the statements displayed were: "To prohibit is not to protect" and "The ban doesn’t end gambling."

The protest was sparked by Provisional Measure 1,394, which has effectively outlawed online betting in Brazil. The affected matches included São Paulo versus Santos on Friday and Atlético-MG versus Bragantino on Saturday, both of which involved teams that could face challenges due to the government's recent decision.

The provisional measure’s effects extend beyond current sponsorship deals and influence planning for future seasons, making negotiations and investment expectations unpredictable. Plínio Lemos Jorge, president of ANJL, emphasized that a regulated environment with clearly defined rules and legal certainty is vital for clubs and sponsors to effectively plan their investments.

Carlos Lima, president of IBJR, echoed the sentiment, urging that any regulatory changes consider their broader implications on the market, which relies on state-issued authorizations. "For the entities, any changes must consider the effects on this chain and preserve the legal security necessary for companies, clubs, and other partners to plan investments and fulfill their commitments," Lima said.

The manifesto initiated by ANJL, IBJR, and other licensed operators contends that the ban does not eradicate betting in Brazil; instead, it removes essential protections for bettors. Data from the Ministry of Finance indicates that approximately 31 million people were engaged with licensed betting platforms, most of whom were participating in a recreational and responsible manner.

Since the enforcement of Provisional Measure 1,394 on September 25, illegal betting operations in Brazil have surged. The manifesto warns against the looming issues posed by the unregulated market, which is often manipulated by organized crime to take advantage of the vulnerable. Legitbet, the monitoring platform for ANJL, recorded 6,401 new illegal websites and noted 811 links to these platforms within a week of the ban's implementation.

Prior to the ban, illegal operations contributed to 41% of the total betting volume in Brazil, with expectations now suggesting this could increase to 100%. The consulting firm LCA predicts that if betting trends continue to channel toward illegal operators, Brazil could face a revenue shortfall of BRL73 billion (approximately $14 billion) between 2027 and 2030.

Both ANJL and IBJR expressed their commitment to addressing the challenges of household debt and problematic gambling through a well-regulated market. They are open to discussing measures such as deposit and time limits, tighter advertising regulations, mental health initiatives, and stricter actions against illegal websites—actions that cannot be effectively imposed on the underground market. Their stance indicates that outright prohibition does not protect bettors; rather, it merely drives them into unregulated spaces.

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