Brazil football clubs in the country’s top-flight Brasileirao are lamenting the president’s recent decision to prohibit sports betting and warns without its sponsorship money the clubs will be put at dire financial risk.

Yahoo! Sports reported this week that 14 of Brazil’s top-20 clubs in its top-flight Serie A league have sports betting companies as their main sponsors, which brought in nearly $200 million in sponsorship fees in 2025.

Without this sponsorship money, several clubs warned in a letter that the reduction in sponsorship fees may drive teams into “insolvency.”

Brazil President Luiz Inácio Lula da Silva recently signed an executive order to prohibit online betting operations in the country. Lula signed the executive order on Friday, Sept. 25, which will require Brazil Congressional approval or amendment to fully go into effect.

The executive order is currently in effect and a prohibition is in place, but Brazil’s Congress will have to approve or amend the order within the next 120 days to be a permanent fixture in the country. Online gaming operators will remain available for customer to withdraw funds until Monday, Oct. 5, and operators will be fully blocked on Tuesday, Oct. 6.

A gray online betting market existed in Brazil from 2018 to 2023. Lula signed legislation in 2023 to regulate online betting in Brazil, establishing rules and regulations to authorize iGaming and online sports betting.

Lula, who described sports betting as a “cancer,” is currently in a tight election race with Sen. Flavio Bolsonaro , with a Sunday, Oct. 4 first-round vote scheduled for the country. Bolsonaro described the online gaming ban as “hypocritical” and “politically motivated” during a campaign rally last week.

If the ban is upheld, Brazil football clubs stand to lose nearly 10% of their total recurring revenue, according to a report from Reuters . Rio de Janeiro club Flamengo President Luiz Eduardo Baptista recently told reporters that his club’s revenue could fall by 400 million reais ($76.78 million) as a result of the ban. The team, he noted, will not be able to honor commitments it has made for the next season.