The government of Luiz Inácio Lula da Silva announced the suspension of betting operations in Brazil, a measure that will directly impact soccer clubs and other sports sectors in the country.
The platforms must refund the funds available in bettors’ accounts by 11:59 p.m. on October 5. As of 12:00 a.m. on October 6, betting sites’ websites and apps will be taken offline, and operations will be prohibited.
The decision has already sparked reactions from some of Brazil’s leading clubs. Flamengo warned of the severe economic impact the suspension of betting will have, while Fluminense called for any changes to take into account legal certainty, the impact on sports, and public revenue.
Speaking to Metrópoles, Luiz Eduardo Baptista, president of Flamengo, stated that the measure will result in a loss of 400 million reais—equivalent to about 76.5 million dollars—for the Rio de Janeiro club.
The club president noted that this situation will have consequences for the financial commitments the club has made through 2027, due to existing contracts with a betting company.
Flamengo also issued a statement noting that the decision directly affects Brazilian sports. The club indicated that the impact will extend to professional soccer, youth leagues, women’s soccer, Olympic sports, and various championships.
For its part, Fluminense acknowledged that there is a legitimate debate surrounding sports betting and mentioned concerns related to debt and addiction. However, the club argued that any decision must also consider legal certainty, predictability, the measure’s effectiveness, its impact on sports, and public revenue.
The Rio de Janeiro-based club raised the possibility of establishing an appropriate transition period in the event of changes and requested that decisions be based on concrete data and the effectiveness of each alternative.
The provisional measure will take effect immediately, although it must be approved by the National Congress within 120 days to remain in force.
In addition, Lula will send a bill to Congress that seeks to criminalize the actions of these companies and their executives. This initiative will also have to be reviewed and approved by lawmakers before it takes effect.
