At least seven websites were exploiting a betting service on the 2024 municipal elections. This type of betting does not have specific legal provision in Brazil. The Ministry of Finance stated that they cannot be understood as legalized or in the process of regulation. On Friday (13), at least three out of the seven no longer offered the service.
Until last Wednesday (11), betting houses like bet365, Betano, Parimatch, and Novibet, among others, allowed bets on who would be the next mayor of Belém, Belo Horizonte, Curitiba, Manaus, Porto Alegre, Rio de Janeiro, Salvador, and São Paulo.
On Friday (13), at least three of the seven no longer offered the service. In the electoral betting category, companies offer different prizes depending on the selected candidate – these are called odds.
Those who use bet365 to bet on Ricardo Nunes (MDB) in the electoral race of the capital city and guess correctly will receive R$ 1.72 for each real bet, for example. In the case of Pablo Marçal (PRTB), it is R$ 2, and with Guilherme Boulos (PSOL), R$ 5 for each real bet.
Last December, the National Congress concluded the voting of the bill that regulates the fixed quota betting sector, in which the bets operate, and also the authorization for online casinos.
The legislation authorizes two types of bets in the country: those that involve sports disputes, such as football matches, or virtual online game events, such as the so-called "little tiger game". Electoral bets are not included.
From 2025, only companies authorized by the Secretariat of Prizes and Bets of the Ministry of Finance will be able to operate in the country.
When asked by reporters to comment on the exploitation of electoral bets, the Ministry of Finance says that "bets that go beyond these two modalities [sports and virtual casino] are not foreseen by the legislation, and cannot be understood as legalized nor in the phase of regulation or adjustment". However, the secretariat did not specify whether the activity is illegal or not.
When questioned, the Superior Electoral Court (TSE) states that electoral bets may be subject to judgment by the court and that, for this reason, it cannot pronounce itself. The Electoral Justice will be able to express itself in the future in the records, it says.
There is no specific legal rule that regulates or prohibits electoral bets in Brazil, say lawyers specializing in the subject interviewed by Folha.
Founding member of the Brazilian Academy of Electoral and Political Law, the lawyer Anderson Alarcon says there is no provision for this market in the electoral law, so the issue is not well resolved. "And, when there is no law that prohibits something, it is imagined that it is allowed”.
As long as electoral bets do not turn into advertisements, polls, or electoral surveys in reverse, producing a biased and artificial incentive in the voter, there is no legal impediment, argues the lawyer.
The prohibition contained in the Criminal Misdemeanor Law does not reach electoral bets, only sports modalities, states Luiz Felipe Maia, partner at MYLaw Lawyers and specialist in regulation of games and bets.
He denies that the lack of legal provision characterizes a loophole. "A loophole is what should have been prohibited and was not", he says. "The law only prohibited bets on sports events and horse racing outside of authorized locations, not other types".
Maia notes that, from 2025, the offering of electoral bets will be prohibited for companies that obtain authorization from the Treasury to come to Brazil, because the license is for sports-themed events or virtual online games.
Political bets fall into the category of tolerated bets —neither allowed nor prohibited— says Fabiano Jantalia, partner at LegisMind and specialist in gaming law. "The law that regulates bets and online casinos does not exclude the possibility of other bets", argues the lawyer. "The electoral bet is legal”.
The National Association of Games and Lotteries (ANJL), an entity that represents companies in the sector, argues that there is no illegality in offering electoral bets until January 1, 2025.
"Considering that electoral results are real events of non-sporting theme, the ANJL understands that this type of service will not be covered by the federal authorization that will be granted to betting houses", says a note sent by the association.
Electoral bets in Brazil
What does the Law say?
The Law 14.790, of 2023, provides for fixed quota bets in two modalities: sports championships and online casinos. The text expressly prohibits the exploitation of bets in junior category tournaments or those played exclusively by minors
What does the Ministry of Finance say?
"Bets that go beyond the modalities provided are not foreseen by the legislation, and cannot be thus understood as legalized nor in the phase of regulation or adjustment", said the department in a note sent to Folha. The Ministry did not state whether the practice is illegal or not.
What do the companies say?
There is no illegality until January 1, when the process of registering bets by the Ministry of Finance ends and the authorizations granted by the department come into effect, says the National Association of Games and Lotteries (ANJL) in a note. The entity also highlighted that the Law does not explicitly prohibit electoral bets.
What does the Superior Electoral Court say?
The court says that electoral bets may be subject to judgment and that, for this reason, it will only express itself in the records
What do the experts say?
As the Law does not contain an express prohibition on electoral bets, the exploitation of this service is not illegal, according to electoral lawyers and gaming experts interviewed by the report
Source: Folha
