Brazil’s betting ban puts sponsorship revenue for CS2 teams and broadcasts at risk

Rituraj Halder Published September 28, 2026

With a tidal move that could cripple the Latin American esports ecosystem of titles like Counter-Strike 2 (CS2) and more, Brazilian President Luiz Inácio Lula da Silva has issued an immediate provisional measure banning fixed-odds sports betting and online casino operations across the country on September 25. Other legally authorized lottery categories remain exempt from the order.

Signed ahead of a fiercely contested presidential election, the provisional measure reverses previous regulatory frameworks. Under the order, new deposits and new advertising or sponsorship agreements were prohibited immediately. Existing advertising may run through October 5, while betting websites and mobile apps are scheduled to be blocked from October 6.

Calling gambling addiction, a public health crisis in his September 25 remarks, Lula’s administration is backing the measure with strict enforcement. A separate bill proposed alongside the measure seeks to establish criminal penalties, including four to six years of imprisonment for operating unauthorized betting services and two to four years for advertising or promotion.

The new presidential order can have adverse effects on CS2 in Brazil

For competitive gaming in Brazil, the sudden ban could be a significant threat to both team economies and tournament broadcasts.

Over the past several years, online sportsbooks and gambling operators have become major sponsors of Brazilian esports. Brazilian organizations including FURIA, MIBR, and Imperial have established prominent partnerships with gambling platforms.

Under the terms of the provisional measure, esports teams are prohibited from engaging in betting sponsorship activities and must remove betting logos from jerseys and digital content before the October deadline. However, Article 17 exempts previously published content where betting advertising appears incidentally, meaning teams will not be required to delete historical posts or videos containing sponsor logos.

The advertising restrictions also cover betting promotions directed at Brazilian audiences, including those originating overseas. Reduced sponsorship income could put pressure on roster budgets, player transfers, and investment in player development across Counter-Strike 2, VALORANT, and League of Legends.

Broadcasts and community streams are also hit hard

Other than player rosters, the ban could affect how fans consume live esports content. Major tournament broadcasts and prominent Brazilian co-streamers routinely carry betting sponsors, such as the Brazilian broadcast agreement between BetBoom and PGL for events including the PGL Singapore Major 2026.

With gambling promotions banned, broadcast channels face potential revenue losses.

The provisional measure carries immediate force of law and remains valid for 60 days, automatically extendable by another 60 days if Congress has not completed voting. The overall financial impact on the Brazilian competitive scene remains uncertain and will depend on how affected agreements are handled and whether organizations can secure replacement revenue from non-gambling corporate sponsors.

Featured image credit: ESL

Related to:

FURIA

MIBR

Imperial