Brazil’s Betting Ban Affects Counter-Strike Teams and BetBoom

Brazil’s licensed betting platforms went offline on October 6 due to a new ban that also prohibits betting sponsorships, leading to a significant financial impact on Brazilian Counter-Strike 2 as Congress and an upcoming presidential runoff on October 25 determine the future of this legislation.

Provisional Measure 1,394, enacted by President Luiz Inácio Lula da Silva on September 25, prohibits the operation, offering, intermediation, and advertising of fixed-odds betting, both online and in-person. Article 16 of the measure extends this prohibition to all forms of communication, advertising, promotion, marketing, and sponsorship related to betting across any medium, whether physical or digital, targeting the Brazilian audience. All advertising materials and sponsor branding were required to be removed within ten days of the measure’s announcement.

Additionally, the measure revokes all federal betting licenses 30 days post-publication, with no refunds for the R$30 million BRL ($5.8 million USD) license fee, nor any compensation for operators. Reports indicate that the government had amassed R$2.5 billion ($482 million) in license fees since the market was regulated.

According to the Finance Ministry, Brazilian households invested approximately R$60 billion ($11.6 billion) annually in online betting, generating around R$10 billion ($1.9 billion) in tax revenue. Following the ban, EstrelaBet’s Brazilian domain redirected users to a government page titled “Brasil sem Bets.”

EstrelaBet was a key sponsor for Vivo Keyd Stars, marking the first Brazilian Counter-Strike organization to withdraw from the scene.

On September 30, Keyd Stars announced an indefinite pause on its CS2 project and the release of its players, citing “recent changes in the competitive landscape and in the country’s business and regulatory environment.” Dust2 Brasil linked this decision to both the betting ban and modifications to Valve’s competitive model.

On the same day, LOUD disbanded its Counter-Strike roster without prior announcement. Reports indicated that LOUD had signed the LP lineup in May and had invested in a bootcamp in Portugal along with several tournament fees. The organization has not publicly addressed this decision. Head coach Pablo “disturbed” Fernandes mentioned he was a free agent “thanks to our president.”

Reports indicated that MIBR, Fluxo W7M, and FURIA had removed betting sponsors from some or all of their communications, while Legacy and Imperial continued to display Rainbet and Gamdom, respectively. MIBR’s social media header showcased IQUNIX and other non-betting partners, with no 1xBet branding visible. MIBR’s partnership with 1xBet began with its Counter-Strike team in 2022 and was extended to its VCT Americas team in November 2025, marking it as the first betting sponsorship approved by Riot for a team.

The impact of the ban also extends to broadcasting.

In the past year, BetBoom secured the Brazilian broadcast rights or sponsorship for most top-tier Counter-Strike events. Reports noted that BetBoom also sponsors FURIA and player Gabriel “FalleN” Toledo.

Currently, ESL Pro League Season 24 is taking place in Katowice, Poland. During a recent viewing of the Portuguese-language broadcast of Spirit versus M80 on Alexandre “Gaules” Borba’s Kick channel, the sponsor slots displayed DHL, Intel, and Acer’s Predator brand, with no BetBoom branding present. Dust2 Brasil announced the cancellation of its remaining BetBoom Storm events “due to circumstances beyond the control of the parties involved.”

The measure also affects the platforms that host these broadcasts. Article 19 mandates that internet platforms must prevent the circulation of betting promotions aimed at Brazilians, even if generated by third parties. Article 22 stipulates that platforms failing to comply could face fines of up to 10% of their group revenue in Brazil or, for companies without Brazilian revenue, up to R$1,000 per registered user, capped at R$50 million ($9.6 million) per violation. Article 17 allows for content published before the measure where betting advertising is incidental.

The permanence of these changes now hinges on political developments.

While the provisional measure takes effect immediately, it will lapse unless Congress approves it. Reports indicate that the deadline for approval falls in January or February 2027, depending on Congress’s recess schedule, and leaders have yet to appoint members to the joint committee that will review the measure. Amendments to the measure were proposed, including one by Deputy Marcos Braz, which would allow betting on final results and scores while maintaining a ban on bets for “isolated events or individual plays.” Another amendment would permit “passive display of brands” on uniforms and in arenas under existing sponsorship contracts for 24 months. Senator Jorge Kajuru suggested refunding operators a portion of their license fees based on the remaining time on their licenses.

None of the proposed amendments specifically mention esports, leaving questions about whether team jerseys, broadcast overlays, or streamer channels would qualify as “passive display.”

The upcoming runoff adds another layer of urgency. Senator Flávio Bolsonaro led the first round on October 4 with about 47% of valid votes compared to Lula’s 44.9%, with nearly all votes counted. Bolsonaro has criticized the measure as “populist, hypocritical, and politically motivated.” He supports banning online casinos while allowing sports betting. Reports indicate that football clubs, including Corinthians, have considered publicly supporting him, though none have officially done so.

Inquiries were made to paiN Gaming and Spun Mídia regarding their exposure to the ban, but no responses were received.

Uncertainties remain regarding whether BetBoom’s agreements with BLAST, PGL, and ESL FACEIT Group include exit clauses, who is currently funding the Portuguese-language broadcasts, how much of Brazilian teams’ sponsorship revenue is derived from betting operators, and whether regulators will treat esports jerseys and stream overlays similarly to football shirts.

For Brazilian team owners, the pressing question is whether to adjust their 2027 budgets now or wait for Congress and the outcome of the October 25 election. The broader concern is whether a scene that allowed one bookmaker to become its primary broadcast supporter can find a suitable replacement if the ban remains in effect.