Brazil's regulated online gambling market was originally set to launch on January 1, 2025, but faces significant uncertainty due to a series of legal challenges being considered by the country's Supreme Federal Court (STF).
As highlighted by Vixio, there are currently five cases under review, with Law No. 14.790 and its related provisions at high risk.
Significant Review Cases
Among these five cases, three aim to completely overturn the legislation, which could halt the federal licensing system. In mid-November, the STF held a two-day public hearing on two of these cases, where stakeholders presented their arguments.
The Attorney General of the Republic (PGR), equivalent to Brazil's Attorney General, raised constitutional questions during the hearing, further intensifying the issue's severity.
Although the presiding judge did not completely ban Law No. 14.790, immediate restrictions were imposed on gambling advertising, and measures were required to prevent welfare recipients from gambling.
Another pending case occurred in May 2024, when seven Brazilian states, including São Paulo, questioned specific provisions of the law.
Judge Luís Fux in October suspended certain provisions that prohibited operators from obtaining multiple state-level licenses or interstate advertising. These rulings could significantly impact the market structure, as state-level operations might circumvent federal oversight.
The most controversial case may involve the Rio de Janeiro state lottery. According to a 2023 decree, the lottery allows operators licensed by the state government to accept bets from Brazilian and international players, provided the betting system is located in Rio and transactions are conducted with the player's legal consent.
The federal government filed a lawsuit in the STF in October, claiming this violates the restrictions of Law No. 14.790 and poses a threat to the new federal regime.
The outcome of these legal disputes will determine the trajectory of Brazil's online gambling industry. As Vixio stated, "the stakes are particularly high in the Rio case," which could weaken federal licensing by creating alternative, lower-cost licensing pathways.
