On November 13, Brazil’s Supreme Court (STF), led by Justice Luiz Fux, issued a provisional ruling to ban the use of social welfare funds for fixed-odds betting and enforce stricter rules on betting advertisements targeting minors. The decision accelerates regulations that were initially set to take effect on January 1, 2025, under Brazil’s Betting Act.
The ruling follows two days of public hearings on November 11 and 12, during which concerns over the socioeconomic impacts of gambling were discussed. Justice Fux highlighted the urgent need for protective measures to safeguard vulnerable populations, including children and Bolsa Família beneficiaries, citing the “harmful immediate effects” of insufficient regulation.
Fux’s decision requires immediate action from the Ministry of Finance, which oversees the regulation and enforcement of gambling laws, to prevent misuse of funds from social assistance programs like Bolsa Família and curb advertising targeting children.
Rising Concerns Over Welfare Spending and Gambling
One of the key issues discussed during the STF hearings was a September study by Brazil’s Central Bank, revealing that Bolsa Família recipients spent R$3 billion on sports betting websites in August alone. This prompted widespread criticism from government officials, advocacy groups, and industry representatives.
Minister Wellington Dias of the Ministry of Social Development supported the expedited enforcement, noting that the Supreme Court’s ruling fast-tracks protections for vulnerable populations. “What the government intended to enforce in 2025 will now take effect immediately,” Dias stated.
The ruling prohibits gambling platforms from accepting transactions funded through welfare programs, ensuring that resources meant for essential household needs are not misused.
Child-Targeted Betting Ads Come Under Fire
In addition to welfare fund misuse, Justice Fux addressed the dangers of child-focused advertising in the gambling industry. Ordinance 1,231/2024, originally slated to go into effect in January 2025, bans all advertisements for fixed-odds betting games targeting minors. Fux’s ruling brings these measures into immediate effect, following evidence presented during the hearings of the adverse effects of gambling promotions on youth mental health and family finances.
The National Confederation of Commerce (CNC) and the Solidariedade party had raised concerns in their Direct Actions of Unconstitutionality (ADI 7721 and 7723), arguing that the absence of strict advertising regulations posed significant risks to Brazil’s younger population.
Industry Reactions and Legislative Backlash
The National Association of Games and Lotteries (ANJL), representing Brazil’s legal gambling operators, expressed support for the measures. The ANJL emphasized its commitment to responsible gaming, distancing itself from practices that exploit minors or financially vulnerable individuals. “Minister Fux’s measure is an important advance,” said ANJL legal director Pietro Cardia Lorenzoni during the STF hearing.
However, Brazil’s betting sector, preparing to roll out licenses in early 2025, has faced significant backlash amid broader discussions of gambling’s constitutionality. Critics argue that declaring the Betting Act unconstitutional could drive bettors to illegal platforms, further exacerbating the issue.
The CNC and other challengers argue that the law governing fixed-odds betting, particularly Laws No. 14,790/2023 and 13,756/2018, conflicts with Brazil’s Constitution. Justice Fux confirmed that a thorough review of the law’s constitutionality will take place in the first half of 2025.
The Betting Act, signed into law by President Lula, outlines operational rules, tax criteria, and penalties for the gambling sector. While it aims to regulate and formalize the industry, growing concerns over gambling’s social impact have led to accelerated enforcement of certain measures.
Source:
“STF veda publicidade de bets para crianças”, noticias.stf.jus.br, November 13, 2024.