Lula administration moves to halt online gambling deposits, citing household debt and financial pressure as betting industry and football clubs protest.

Brazilian President Luiz Inácio Lula da Silva has ordered a ban on online betting operations, just days before the country’s October 4 presidential election, as the government moves to curb gambling-related debt and growing financial pressure on households.

Finance Minister Dario Durigan announced the measure, saying users would no longer be permitted to deposit money into betting platforms.

The executive order takes immediate effect but must be approved by Congress within 120 days to remain in force.

Under the new measures, betting companies will allow users to withdraw their remaining funds until October 5, while app stores and internet providers are expected to begin blocking betting websites from October 6.

The government has also prohibited new advertising agreements with betting companies. Existing sponsorship and advertising contracts will become invalid from October 6.

The crackdown comes after the rapid expansion of Brazil’s betting industry following the introduction of a regulatory framework in 2023.

The Finance Ministry estimates that Brazilian households spend about 60 billion reais ($11.57 billion) annually on online betting. Recent surveys have also indicated strong public support for a complete ban on online gambling.

However, the decision has faced opposition from parts of Brazil’s football industry, which relies heavily on betting companies for sponsorship and advertising revenue.

Flamengo described the measure as a heavy blow to Brazilian sports, warning that the financial consequences could extend beyond professional football to youth development, women’s football and Olympic sports.

The betting industry has also criticised the ban. Its representative association warned that the measure could drive millions of gamblers towards illegal betting platforms and undermine investments made under Brazil’s recently established regulatory system.

The government, however, has maintained that the restrictions are aimed at addressing the financial and social consequences associated with the rapid growth of online gambling.

The measure comes as Lula seeks another term in an election that polls have shown to be closely contested with right-wing Senator Flávio Bolsonaro.