Brazil Betting Ban Hits Counter-Strike as Keyd Stars Pauses Team, Broadcast Deals in Doubt
The provisional measure, which also cancels all betting licenses, has put major broadcast rights and team sponsorships at risk.
Brazil’s ban on betting operations and sponsorships has forced a Counter-Strike 2 organization to pause its team and put the local broadcast rights for major tournaments in doubt.
President Luiz Inácio Lula da Silva signed Provisional Measure 1,394 on Sept. 25, outlawing fixed-odds betting and all related advertising and sponsorship aimed at the Brazilian public.
Vivo Keyd Stars announced on Sept. 30 that it was pausing its CS2 project indefinitely and releasing its players, citing recent changes in the country’s regulatory environment and Valve’s competitive model.
Its main sponsor was the bookmaker EstrelaBet, whose Brazilian domain now redirects to a government page.
LOUD dismissed a Counter-Strike roster the same day before ever announcing it, with head coach Pablo “disturbed” Fernandes writing that he was a free agent “thanks to our president.”
Other teams, including MIBR, Fluxo W7M and FURIA, have removed betting sponsors from some or all of their communications.
The ban also cancels every federal betting license 30 days after publication, with operators receiving no refund of the R$30 million license fee.
BetBoom, which holds the Brazilian broadcast rights or sponsorship for most top-tier Counter-Strike through deals with BLAST, PGL and ESL FACEIT Group, is now barred from promoting itself to Brazilian viewers.
Its contracts with tournament operators have not been made public, and it is unknown if they include exit clauses for regulatory changes.
Alexandre “Gaules” Borba’s Portuguese-language Kick broadcast of ESL Pro League Season 24 this week showed no BetBoom branding, rotating through DHL, Intel and Acer sponsors instead.
Dust2 Brasil also cancelled its remaining BetBoom Storm events “due to circumstances beyond the control of the parties involved.”
The measure imposes duties on internet platforms to prevent the circulation of betting promotion aimed at Brazilians, with fines of up to 10% of a company group’s Brazilian revenue for non-compliance.
Article 17 exempts content published before the measure where betting advertising is incidental.
A provisional measure takes effect immediately but lapses unless Congress approves it, with a final vote possible in early 2027.
Lawmakers filed 48 amendments by an Oct. 13 deadline, with proposals including a 24-month grace period for existing sponsorship contracts and partial refunds of license fees.
None of the reported amendments mention esports.
The political future of the ban is also tied to an Oct. 25 presidential runoff between Sen. Flávio Bolsonaro and Lula.
Bolsonaro has called the measure “populist, hypocritical and politically motivated” and supports keeping licensed sports betting, according to Reuters.
The National Association of Games and Lotteries is challenging the ban in court, arguing it violates free enterprise.
Redington Cybersport reported in October that the government sanctions have also forced other major teams to remove betting sponsors from their branding.
For Brazilian team owners, the immediate question is whether to cut 2027 budgets now or wait for Congress and the Oct. 25 election result.
