Fresh chaos: Brazil bans betting, São Paulo set to lose sponsor | OneFootball

The Federal Government officially and expressly announced this Friday (25) the indefinite suspension of the operation of sports betting houses and online gaming throughout the national territory, the popular bets. The decision was formalized by the Minister of Finance, Dario Durigan, accompanied by the President of the Republic, Luiz Inácio Lula da Silva, and members of the top tier of the Executive Branch. The Provisional Measure (MP) detailing the guidelines and operational deadlines will be published in an extra edition of the Official Gazette of the Union.

With the publication of the regulatory act, making new financial contributions and deposits into betting platform accounts is immediately prohibited as of this Friday. The measure directly impacts São Paulo, which has a partnership with Superbet, which is expected to terminate its contract with the Morumbi club.

According to the schedule established by the Ministry of Finance, the bets have until 11:59 p.m. on October 5 to allow the voluntary withdrawal of funds held on behalf of users. Starting October 6, all operators’ websites and apps must be taken offline, with betting activities and the display of brand advertising materials in the country expressly prohibited.

Is it bad news for Tricolor?

The enactment of the provisional measure hits Tricolor head-on, one of the Série A clubs most dependent on master sponsorship and advertising revenue to sustain its daily cash flow. Amid a severe liquidity crisis — evidenced by recent bank borrowing and delays in the payment of image rights — the forced termination of contracts with betting platforms directly threatens Tricolor’s ability to meet the professional squad’s payroll, settle urgent operating debts, and comply with the guidelines required by the CBF’s Financial Fair Play Agency.

The freezing of this important source of revenue also compromises the planning of new investments in the youth academy in Cotia, funding for structural improvements at the Barra Funda training center, and room to maneuver for signing reinforcements in the market.

Facing the collapse of one of its main budget streams, São Paulo’s board is considering joining the emergency credit line under negotiation with the National Bank for Economic and Social Development (BNDES), an alternative being worked out together with other Brazilian football clubs to mitigate the immediate impact of the end of bets sponsorship.

Officially, São Paulo, through its president or any other channel, has not yet commented on the matter, except in a recent joint statement with other national clubs calling for bets to remain.

According to UOL, Superbet — sponsor of São Paulo and Fluminense — has already notified both institutions about the possible contractual dissolution in the event of a government ban. Tricolor, however, did not confirm the notice from its commercial partner.

Classification of crimes, bill, and debt renegotiation

During the same prohibitory act, President Lula signed a Bill that will be sent urgently to the National Congress. The text establishes formal legal definitions and classifies specific crimes related to the unauthorized operation of fixed-odds betting.

The Executive also announced the creation of a special debt renegotiation program aimed at the financial restructuring of families affected by indebtedness resulting from gambling addiction, an instrument that will also cover other categories of default.

The regulatory shift comes about three years after the enactment of Law No. 14,790/2023 (known as the Bets Law), sanctioned under the current administration, which had established the regulated betting market in the country.

Schedule for shutting down operations in Brazil

The Federal Government detailed the stages of the demobilization plan and the return of funds to bettors:

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.