Brazil’s upcoming launch of online gambling and sports betting continues to see more restrictions
Brazil’s Federal Supreme Court (STF) has fast-tracked measures aimed at addressing the social and financial consequences of gambling. On November 14, the court unanimously approved an emergency injunction from Minister Luiz Fux, implementing stricter regulations, including banning the use of Bolsa Família welfare funds for gambling and prohibiting advertisements targeting minors. Originally set for enforcement in 2025, these rules are now effective immediately.
The decision follows alarming data from Brazil’s Central Bank, which reported that 20% of Bolsa Família funds were used for online gambling in August. This prompted urgent calls for action to protect vulnerable populations. Minister Fux highlighted the risks posed by delays in regulating gambling, emphasizing the need for immediate measures to prevent further harm.
The ruling stems from a Direct Action of Unconstitutionality (ADI) filed by the National Confederation of Trade in Goods, Services, and Tourism (CNC), which challenged existing laws governing Brazil’s legal betting market. The CNC argued that current advertising regulations fail to adequately safeguard children and adolescents, while also raising concerns about economic instability linked to unregulated gambling.
Under the STF’s ruling, several measures are now in place. Advertisements for gambling targeting minors are strictly prohibited, and welfare program funds like Bolsa Família and Benefício de Prestação Continuada cannot be used for betting activities. The Ministry of Finance has been tasked with enforcing these regulations.
The betting industry has expressed support for the court’s decision, with the National Association of Games and Lotteries (ANJL) commending the measures as essential for promoting responsible gaming. ANJL also warned that overturning betting laws could strengthen the black market.
These new regulations reflect Brazil’s growing concern over the impact of gambling on its most vulnerable citizens and mark a significant step toward creating a safer, more regulated market.
