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Sports Betting in Brazil: the Supreme Federal Court Supported the Decision of Luiz Fux

Focus Gaming
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The highest Brazilian court voted in favor of the preliminary decision made by the magistrate to suspend betting advertising targeted at young people and also to outline measures to restrict the use of social assistance program funds for betting.

Brazil.- The minister of the Supreme Federal Court (STF), Luiz Fux, had issued a preliminary order stipulating the suspension, across the national territory, of any online gambling advertising aimed at children and teenagers and also urged measures to restrict the use of social assistance program funds for online betting.

This decision was subject to review by the full bench of the Supreme Federal Court, which, unanimously, supported Fux's ruling. The eleven ministers, including the president of the STF, Luís Roberto Barroso, backed the preliminary decision of the reporting minister in an extraordinary virtual plenary held yesterday. Only the minister Flávio Dino supported with reservations the ruling of the rapporteur.

Fux's decision arose from the Direct Action of Unconstitutionality (ADI) 7721 filed by the National Confederation of Commerce of Goods, Services and Tourism and the Solidarity Party.

The vote of minister Flávio Dino supported Fux's ruling, but proposed to expand the decision with the following reservations. The minister proposed that the Unified Health System (SUS) be responsible for the regulations on “pathological gambling disorders”. Dino also argued that a deadline of 30 days be set for the Ministry of Finance to restrict outcomes that can be manipulated by a single agent in counterparty betting.

“Therefore, the regulation, to be compatible with the Federal Constitution, must prevent such modalities, to avoid insufficient protection of the fundamental rights of consumers. At stake is the very concept of betting, which cannot be defrauded by the individual will of a person who deliberately produces an event that generates profits for a few and losses for many,” stated Dino in his vote.

The preliminary (provisional and urgent) decision of minister Fux determined that the federal government immediately comply with the inspection and control measures, directed at children and teenagers, provided in Ordinance 1.231/2024 of the Ministry of Finance, which regulates the Betting Law (Law 14.790/2023).

See also: Online gaming and sports betting in Brazil: the Attorney General of the Republic seeks to declare the unconstitutionality of the laws

The measure also determined that the Ministry of Finance, responsible for regulating and controlling the matter, implement immediate measures that prevent the use of social and welfare program resources, such as Bolsa Família, Continuous Payment Benefit and similar programs, for betting.

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