Brazil’s Betting Operators Take Protest to Football Stadiums Over Lula’s Online Betting Ban
Brazil’s Betting Operators Take Protest to Football Stadiums Over Lula’s Online Betting Ban
A Stadium-Sized Message From the Licensed Betting Industry
Licensed betting operators in Brazil turned football’s biggest stage into a protest platform over the weekend. During top-flight matches on Friday and Saturday, companies linked to the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) surrendered their advertising space around the pitch to display protest messages aimed at the federal government.
The phrases were direct and deliberately simple: “To prohibit is not to protect” and “The ban doesn’t end gambling.” The action was a coordinated response to Provisional Measure 1,394, the executive order issued by President Luiz Inácio Lula da Silva’s administration that banned online betting in Brazil.
Why Are Betting Companies Protesting?
What Is Provisional Measure 1,394?
Provisional Measure 1,394 is a Brazilian federal decree with immediate legal force. It was enacted on 25 September and effectively suspended licensed online betting operations across the country. While the government has framed the move as a protective step for consumers and public finances, the licensed industry argues that the measure creates chaos, uncertainty, and a sudden disruption to a market that was already being regulated.
For betting operators, the problem is not just lost revenue. It is the sudden reversal of a system they had been building under state-granted authorisations. Companies had obtained licences, invested in compliance, and signed long-term commercial contracts under the assumption that the regulated market was here to stay.
Football Clubs Caught in the Crossfire
The protest was not random. It targeted football because clubs are among the most visible victims of the ban. Bets and sports sponsorships had become deeply connected in Brazil, and many top-tier clubs rely on betting companies as major financial partners.
The messages were displayed during two specific matches:
- São Paulo vs. Santos on Friday
- Atlético-MG vs. Bragantino on Saturday
Both fixtures featured clubs directly impacted by the federal government’s decision. According to the operators’ manifesto, the provisional measure affects not only existing sponsorship commitments but also:
- Planning for upcoming seasons
- Negotiation and renewal of sponsorship contracts
- The predictability of long-term investment in sport
In short, clubs are being forced to reorganise budgets and forecasts in an environment where one of their main sources of income has been removed overnight.
Who Stands Behind the Protest?
The movement was led by the two main industry associations:
- ANJL – the National Association of Games and Lotteries
- IBJR – the Brazilian Institute of Responsible Gaming
They were joined by licensed betting operators working in Brazil. Together, they published a manifesto explaining why they believe the ban is counterproductive and dangerous.
Plínio Lemos Jorge, president of ANJL, emphasised that the industry wants rules, not chaos:
“For ANJL and IBJR, maintaining a regulated environment with clear rules and legal certainty is fundamental so that clubs, companies and other agents in the sports chain can plan their long-term investments.”
Carlos Lima, president of IBJR, added that the issue goes beyond football sponsorships. It is about the credibility of the state as a regulator:
“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.”
In other words, the operators argue that the government is not just banning a product — it is breaking promises made to businesses that entered a regulated system in good faith.
Does the Ban Actually End Gambling?
The Surge in Illegal Platforms
The central argument of the manifesto is that prohibition does not eliminate gambling. It simply pushes it into unregulated, unmonitored, and often criminal environments.
The numbers cited in the protest are striking. According to Legitbet, ANJL’s official monitoring platform:
- 6,401 new illegal betting websites were observed between 22 and 28 September
- 811 links to these platforms were identified on monitored communication channels
These figures cover just one week. They suggest that the demand for online betting did not disappear after the ban — it migrated.
The Black Market Was Already Large
Before the provisional measure, the illegal market already accounted for 41% of the volume wagered in Brazil. The industry now projects that this share could reach 100% if all bettors are forced away from licensed platforms.
The implications are serious. Illegal operators do not follow advertising rules, do not protect vulnerable users, and are frequently linked to organised crime networks that target low-income bettors with fraudulent schemes.
The Economic Cost of Prohibition
The financial impact could be enormous. According to consulting firm LCA, up to BRL 73 billion (approximately $14 billion) in revenue would be at risk between 2027 and 2030 if all demand migrates to illegal operators.
That money would not just disappear from betting companies. It would also mean:
- Lost tax revenue for the Brazilian government
- Lost sponsorship income for football clubs
- Lost jobs in the legal technology, marketing, and customer service sectors
- Reduced funding for responsible gambling initiatives
From the industry’s perspective, the ban is therefore not a moral victory. It is a financial and social setback that mainly benefits criminals.
“To Prohibit Is Not to Protect”
What About Problem Gambling?
The industry is aware that critics of betting point to household debt and gambling addiction. ANJL and IBJR did not ignore these concerns. Instead, they argued that a regulated market is the best tool to address them.
According to the organisations, licensed operators are willing to discuss and implement:
- Deposit limits and time limits for players
- Stricter advertising rules
- Better mental health care and support services
- More rigorous measures to block and combat illegal websites
Their key point is that none of these protections can be imposed on clandestine operators. A bettor who moves to an illegal website loses access to all safeguards, including self-exclusion tools, spending caps, and mechanisms to verify fair play.
The Real Threat to Vulnerable Bettors
The manifesto warns that the growth of the black market is being exploited by organised crime to scam the most vulnerable people. When betting is illegal, there is no consumer protection agency to complain to, no responsible gambling policy, and no way to verify that the games are fair.
In this sense, the operators argue, the ban does not protect anyone. It simply removes the layer of supervision that regulated companies were required to provide.
Conclusion: What the Betting Industry Wants
The stadium protest was not an attack on the government. It was a call for dialogue.
The licensed betting sector wants the Brazilian government to reconsider the blanket ban and return to a regulated model with:
- Clear and stable rules
- Legal certainty for companies and investors
- Strong consumer protection mechanisms
- Effective enforcement against illegal operators
For the industry, the way forward is not prohibition — it is regulation. The message printed on the advertising boards at São Paulo and Atlético-MG matches was meant to remind the Brazilian public and policymakers of exactly that: banning betting does not make it disappear. It only removes the protections that a legal, licensed, and accountable market can provide.
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