Brazil clubs tell Supreme Court they are the 'first casualty' of Lula's online gambling ban

Brazil's Supreme Court (STF) began hearing arguments on the impact of the federal ban on online gambling, with football clubs describing themselves as the first casualty of the policy. The hearing in Brasilia examined Provisional Measure 1,394/2026, which President Luiz Inácio Lula da Silva issued on 25 September. The measure repeals the 2024 Bets Law and prohibits online gambling across the country.

The ban faces challenges on two fronts. Congress has to decide whether to turn the provisional measure into permanent legislation, with rejection or amendment both possible, while the STF considers constitutional challenges. Justice Luiz Fux, who led the session, recalled that the court had already heard extensive evidence on the social and economic effects of gambling in public hearings held in 2024, before the Bets regime existed. He heard from representatives of the Ministry of Justice and Public Security, the Attorney General's Office, football clubs and the players' federation Fenapaf.

Club officials focused on lost revenue. Flamengo said about R$430m in annual income and more than 1,200 jobs could be at risk, and its general vice-president argued that the club had taken on obligations to athletes and staff in good faith under the law then in force. Fluminense president Mattheus Montenegro noted that betting companies provided around 34% of Série A clubs' commercial revenue in 2025, and warned that smaller clubs have fewer alternative sponsors. Women's football and youth development could be among the first programmes to lose funding, and Botafogo's representatives said its academy and women's team would be affected.

The clubs also criticised the pace of the change. Montenegro contrasted the 10-day adjustment period in Brazil with the 10 months allowed in Italy for advertising restrictions, adding that banning the activity itself called for even greater caution. Cruzeiro's representative, José Francisco Manssur, objected that the government is keeping R$30m authorisation payments despite ending licences early, calling the move confiscatory.

The government defended the measure. It acknowledged that regulation of online gambling had failed and argued that the social costs had become intolerable, making prohibition a legitimate step. Attorney General Jorge Messias cited weaknesses in consumer protections in backing the ban. The measure bars the operation, offering, intermediation and advertising of fixed-odds betting, and Congress has a 120-day window to act on it.