Lula Signs Measure Banning Online Bets Nine Days Before First-Round Vote

Overview

• The president signed a medida provisória on Friday that immediately prohibits licensed online bets and took effect on publication of the text, with the government citing addiction and money laundering as reasons for the move.
• Bettors must withdraw account balances by 23:59 on October 5 and licensed betting sites and apps are to be taken offline on October 6, with banks and Caixa named to help process refunds.
• The administration filed a legislative proposal to create new crimes for operators with prison terms of about four to six years and said enforcement will involve the Federal Police, Receita Federal, Coaf and Anatel.
• Opposition leaders called the MP electoral opportunism and the Lula campaign lodged a complaint at the Superior Electoral Court after attacks from rival candidates, while betting firms and sponsored football clubs signaled likely legal challenges and contract disputes.
• Congress must approve the MP within the coming weeks for it to become permanent, so the next phase will feature congressional debate, judicial injunctions from operators and government plans to manage refunds and financial relief for clubs if needed.