Brazilian President Luiz Inácio Lula da Silva has announced a ban on sports betting in the country, just days before the presidential election in which he is seeking a fourth term.

The ban, announced on Friday, follows growing concerns over gambling addiction, household debt and the rapid expansion of the betting industry, which has become a major source of sponsorship for Brazilian football clubs.

Finance Minister Dario Durigan, who announced the measure alongside Lula, said deposits into betting platforms would no longer be permitted.

“It is no longer possible to deposit money into betting sites in the country,” Durigan said.

The decision comes ahead of the October 4 first-round election, with Lula facing right-wing Senator Flávio Bolsonaro in a closely watched contest.

Brazil’s betting industry has expanded significantly since the government introduced a regulatory framework in 2023. Since then, betting companies have invested heavily in advertising, with football clubs, professional players and social media influencers becoming major promoters of the industry.

Thirteen of Brazil’s 20 top-flight football clubs have online betting companies as their main shirt sponsors, while prominent footballers, including Neymar and Vinicius Junior, have appeared in betting advertisements.

According to the government, 85 betting licences have been issued, each costing 30 million reais ($5.7 million). The government said the licence fees would not be refunded.

Durigan also announced an immediate ban on new advertising contracts involving betting companies, while existing sponsorship agreements will become invalid after October 6.

“As of that date, there will be no site, no application and no legal sponsorship of bets in the country,” he said.

The decision has been criticised by football clubs, with Flamengo describing it as a “heavy blow to Brazilian sports.”

The club warned that the impact could extend beyond professional football to youth academies, women’s football, Olympic sports and other competitions.

“Brazil spent years debating how to regulate sports betting,” Flamengo said, arguing that companies and sporting institutions had made commitments based on the existing regulatory framework.

Durigan defended the government’s decision, saying attempts to regulate the industry had failed to address its growing social impact.

He said more than 60 billion reais ($11 billion) had been transferred from Brazilian households to legal betting companies.

Lula also pointed to the consequences of gambling addiction, recounting the case of a young man who, according to the president, had attempted suicide three times because of his gambling problem.

“I decided to take a necessary, tough and drastic measure. It’s like cancer. Either we remove the tumour, or it kills us,” Lula said.

The ban has not yet become permanent, as the provisional measure signed by Lula must be approved by Congress.

Flávio Bolsonaro criticised the move, describing it as a “populist, hypocritical and election-driven” decision made shortly before the polls.

Several football clubs have also opposed the ban, arguing that betting sponsorships provide vital financial support. Lula dismissed the argument as “nonsense” and called for an end to what he described as the “shamelessness in soccer.”

The National Association of Games and Lotteries (ANJL), which represents licensed betting operators, also warned against the prohibition.

The association, together with eight other industry groups, said the ban could push gamblers towards illegal betting platforms and lead to losses in tax revenue and employment.

The betting industry paid 9.95 billion reais ($1.73 billion) in federal taxes in 2025.

“The challenges are real. The answer lies in oversight and stronger regulation,” the ANJL said. “To regulate is to control. To ban is to lose control.”