The Federal Supreme Court (STF) will analyze the constitutionality of online betting in Brazil by April 2025. The Attorney General’s Office (PGR) raised the issue, highlighting flaws in current legislation.
For the PGR, current laws do not offer sufficient protections for fundamental rights and assets provided for in the Constitution. The debate takes place amid pressure from different sectors of society and concerns about the social impacts of betting.
Regulatory process
Experts and members of the government believe that the problems could be avoided. According to sources, the legislation should include the Civil House, the Ministry of Health and Social Development. However, the Treasury focused only on tax issues.
Throughout 2024, criticism emerged ranging from the misuse of the Bolsa Família benefit for betting to the absence of programs for gambling addicts. These criticisms call into question the effectiveness of regulation.
The Michel Temer (MDB) government approved the legalization of betting in December 2018. However, the Jair Bolsonaro (PL) administration should have completed the process. The Lula (PT) government resumed regulatory measures, expected to be implemented in 2025.
They announced the regulation as a way to increase tax revenue. However, criticism intensified. Even parliamentarians who voted in favor began to question the measure after studies published on the expenses of Bolsa Família beneficiaries, which raised controversy.
According to the CEO of Sorte Online, Márcio Malta, “there are no major adjustments to be made that were not already foreseen in the implementations of regulated operators”. However, he points out challenges in applying blocks to illegal websites, due to the complexity of the process.
The sector has positive expectations, but recognizes the need for adjustments to guarantee the security and legality of the market. To achieve this, it is essential to improve the rules and strengthen the fight against irregular practices.
Recent STF decisions for the betting market
At the end of 2024, the STF prohibited Bolsa Família beneficiaries from using the benefit for betting. It also banned advertising aimed at children and teenagers. Despite this, the government faces difficulties in implementing these restrictions.
Businesspeople in the sector warn that regulatory pressure could lead to legislation being rolled back, harming legal companies. They brought forward some measures, such as the list of authorized companies and the ban on the use of credit cards, to contain criticism.
The STF’s decision will be decisive for the future of betting in Brazil. The hope is that the market will find a balance between revenue, social protection and legal security.
