Brazil’s Supreme Court Tightens Gambling Regulations

Is Brazil ready for the launch of its regulated online gambling market in 2025? The Brazilian Supreme Court is ensuring it is. By ordering immediate changes to gambling regulations, including a ban on gambling with social benefits and restricting advertising to minors, the court is setting the foundation for a responsible and regulated market. These measures address critical concerns about personal finances, public health, and the social impact of gambling, as the nation prepares to open its doors to regulated operators.

Brazil’s Supreme Court Enforces New Measures for Responsible Gambling Regulations

Key Points:

1. Brazil’s Supreme Court bans the use of social benefits for gambling and limits advertising to minors.
2. Operators must comply with new rules, including restrictions on credit card gambling, ahead of the 2025 market launch.
3. Legal challenges continue as the framework faces scrutiny, with regulators emphasizing its role in curbing illegal gambling.

In a landmark decision, the Supreme Court, led by Minister Luiz Fux, proposed urgent amendments to Ordinance 1231 to address gaps in existing gambling protections. These changes, endorsed by the court, include:

1. Prohibiting Gambling with Social Benefits
   The court banned the use of funds from social welfare programs like Bolsa Família for gambling, citing risks to family budgets.
2. Restricting Advertising to Minors
   New rules prohibit gambling advertisements targeting individuals under 18, particularly through sports sponsorships and media platforms.
3. Credit Card Restrictions
   Operators have agreed to bring forward a ban on gambling using credit cards to curb irresponsible spending.

Minister Fux emphasized the urgency of these measures, stating:
“The current scenario of insufficient protection with immediate harmful effects, especially on children and family budgets, requires immediate intervention.”

Industry Support and Compliance

The National Association of Games and Lotteries (ANJL) welcomed the Supreme Court’s measures, noting that many operators were already in favor of these changes. The association sees these rules as aligned with their commitment to responsible gaming practices.

The changes come as Brazil prepares to launch its regulated gambling market on January 1, 2025. Operators currently active in the grey market have been granted provisional permission to continue operations if they apply for licenses under the new framework.

Regis Dudena, head of Brazil’s gambling regulator, the SPA, highlighted the importance of moving forward with regulation to combat illegal gambling, which has been a persistent issue. He argued that delaying the process would only exacerbate the problem.

Challenges to the Framework

While these protective measures address immediate concerns, Brazil’s gambling framework faces legal challenges. The National Confederation of Commerce (CNC) has filed a lawsuit questioning the constitutionality of the regulatory framework.

During a recent two-day Supreme Court hearing, regulators and industry stakeholders defended the new rules. They argued that the framework is crucial for generating state revenue and combating the illegal gambling market, which continues to thrive.

Aiming for Responsible and Regulated Growth

Brazil’s move toward regulated gambling is seen as a step forward in creating a sustainable and responsible market. By integrating strict advertising and operational rules, the government aims to balance industry growth with public welfare.

The regulated market is expected to generate significant tax revenue, with projections pointing to billions in contributions to state coffers. However, success hinges on collaboration between regulators, operators, and stakeholders to address ongoing challenges.

Brazil’s Supreme Court has taken decisive steps to ensure a responsible and well-regulated gambling market ahead of its 2025 launch. By banning gambling with social benefits, restricting advertising to minors, and enforcing stricter rules, the court has set a precedent for balancing economic growth with social responsibility.

As the framework faces legal scrutiny and operators adjust to the new rules, Brazil’s gambling industry is at a pivotal moment. With effective implementation, the country can curb illegal gambling, protect vulnerable populations, and create a thriving, responsible gaming environment. The world will be watching as Brazil sets the stage for the next chapter in its gambling evolution.