The Federal Supreme Court (STF) of Brazil has unanimously endorsed an emergency injunction issued by Minister Luiz Fux to combat gambling-related concerns. These measures include banning the use of Bolsa Família social welfare funds for betting and prohibiting gambling advertisements aimed at minors. The court’s decision, made on November 14, advances the enforcement of these rules from January 2025 to immediate effect.
The ruling comes in response to increasing concerns over the detrimental financial and social impact of gambling. A report by Brazil's Central Bank in September revealed that 20% of Bolsa Família funds were spent on online gambling in August. The ban has garnered broad industry support, with the National Association of Games and Lotteries (ANJL) calling it a "positive and necessary" step that aligns with responsible gaming practices.
The STF held a two-day hearing from November 12 to 13 to explore the implications of gambling in Brazil. This session was triggered by a Direct Action of Unconstitutionality (ADI) filed by the National Confederation of Trade in Goods, Services, and Tourism (CNC). The CNC challenged the constitutionality of laws governing the country's upcoming legal betting market.
Minister Fux emphasized the urgency of implementing regulations to address the risks posed by gambling advertisements to children and the misuse of social welfare funds. “The risk of delay in the decision must be immediately eliminated,” Fux stated.
The CNC’s ADI argued that existing advertising rules were insufficient to protect children and adolescents. Additionally, the organization highlighted the economic instability caused by unregulated gambling practices, which it claimed had negatively impacted Brazil's national development.
The STF’s ruling enforces several stringent measures under Ordinance 1,231/2024, overseen by Brazil's Ministry of Finance. These include:
To ensure compliance, the Ministry of Finance has been tasked with immediate implementation and enforcement of these measures.
The betting industry has largely supported the STF’s actions. The ANJL, representing legal operators, underscored its commitment to responsible gaming. In a statement, the association remarked, “Unlike companies that intend to remain outside the law from 2025, [operators] committed to honest and responsible gaming…do not condone the disclosure of bets to minors or the use of resources that have the potential to financially harm the most vulnerable Brazilian families.”
ANJL’s legal director, Pietro Cardia Lorenzoni, also participated in the STF hearings, advocating that overturning betting laws would empower the black market. The association reiterated its willingness to engage in dialogue to help build a regulated and responsible gambling market.
The STF’s actions reflect growing political and societal concerns about the influence of gambling in Brazil. The decision to advance enforcement highlights the urgency of addressing the adverse effects of betting on vulnerable populations, particularly minors and low-income families.
Source:
''STF bans advertising of bets to children and determines adoption of measures against the use of Bolsa Família resources in bets'', noticias.stf.jus.br, November 13, 2024.