Lula signs MP banning bets in Brazil; see deadline to withdraw funds

The ban on betting in Brazil was announced by the federal government on Friday (25), after President Luiz Inácio Lula da Silva signed a Medida Provisória (MP) that interrupts the operation of online gambling platforms in the country. The decision lays down rules to prevent new deposits, ensure the withdrawal of the values available to users, and determine the withdrawal of websites and applications from the air.

The announcement was made on São Paulo by the acting Minister of Finance, Dario Durigan. According to the government, the measure is part of a set of economic actions aimed at addressing household debt and regulating the financial sector.

With the ban on bets in Brazil, the companies responsible for the betting platforms are prevented from receiving new financial contributions from the publication of the medida provisória in the extra edition of the Official Journal of the Union.

Users who have money available in the accounts of the platforms will have a deadline to request the redemption of the amounts. The voluntary withdrawal can be made until 23:59 on October 5. After this period, the companies’ websites and applications should go offline.

The companies will have to forward to the responsible banks the consolidated information of the users by CPF between October 7 and 8. The return of the values should occur between the 9th and 14th of October. If there are technical difficulties in the process, Caixa Econômica Federal may act as responsible for the intermediation of payments.

Bet advertising will also be interrupted

In addition to the closure of the platforms, the measure determines the end of advertising, advertising and sponsorship actions related to the betting companies.

From the publication of the MP, new advertising campaigns are prohibited, and existing contracts should be terminated by October 5.

The government has also forwarded to Congresso Nacional a bill to address possible crimes related to the irregular exploitation of betting. The Constitution prevents provisional measures from creating criminal rules, so the change will be analyzed through a specific proposal.

The proposal provides for penalties for anyone who exploits, administers or operates prohibited gambling platforms, including imprisonment and fines. The text also addresses practices such as advertising considered irregular, recruitment of bettors and misuse of personal data for the dissemination of ads.

The decision to ban bets in Brazil changes the way a sector operates that has gained ground in recent years, especially through digital advertising and sports sponsorships. Now, users and companies will have to follow the deadlines set by the government for closure of activities.

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