Betting with benefits banned in Brazil pending final approval
Minister for Brazil’s Federal Supreme Court Luis Fux has filed an injunction to ban betting via Brazil’s Bolsa Familia social welfare cheque. The measure will be put to an emergency session of the Brazilian chamber of deputies today with plans to enforce it effective immediately.
The decision was made after a two-day hearing at the Federal Supreme Court (STF), initiated on Monday 12 November, sought to investigate the impacts of betting in Brazil and determine whether the law governing the upcoming legal market is constitutional.
The STF hearing was called following a request from Brazilâs third biggest trade union, the National Confederation of Trade in Goods, Services and Tourism (CNC), filed an ADI (Ação Direta de Inconstitucionalidade) which is a legal action in Brazil intended to overturn a law that conflicts with the countryâs Constitution.
Brazilâs betting sector, which is preparing to receive initial licences shortly, has faced significant backlash from politicians and various private sectors in recent months. A study from Brazilâs Central Bank in September revealed 20% of funds submitted via its Bolsa Familia welfare programme in August was spent on online gambling.
Bolsa FamĂlia works with a card issued by the state-owned Caixa EconĂŽmica Federal bank. The ban will ensure betting with the card will be prohibited, at least until the Supreme Court makes its final decision on whether betting laws are unconstitutional. This is expected in H1 2025.
Fux requested STF president Luis Roberto Barroso called an extraordinary virtual session of the plenary, which is the highest deliberative body in the chamber of deputies. The meeting will determine whether Fuxâs decision to bring in these measures will be made permanent. If agreed, the ban will be implemented immediately,
Barroso accepted the request due to its exceptional nature. The session has been scheduled for today (14 November), starting at 11am and ending at 11.59pm.
Fux has also called for a ban on advertising that targets minors to be implemented immediately, to ensure better protection for children against online gambling.
CNCâs ADI partially granted
The CNCâs ADI suggested the existing rules on advertising, which were released in August, âare not sufficient to prevent children and adolescents from accessing online gamblingâ.
Additionally, it states the lack of regulations against betting using social welfare in Brazil âhas brought economic instability that, in truth, has caused a real setback in national developmentâ.
The prohibition of betting with social welfare is also supported by the National Association of Games and Lotteries (ANJL), the betting industryâs leading trade body in Brazil.
ANJL said the measure was âpositive and necessaryâ and âin line with responsible gaming, defended by the [legal] online betting and gaming marketâ.
âUnlike companies that intend to remain outside the law from 2025, [operators] committed to honest and responsible gaming, including ANJL members, 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,â the ANJL said.
âThe association reiterates that it is in the interest of the market and its members to regulate the sector. And Minister Fuxâs measure is an important advance. ANJL will always be open to dialogue to contribute to a solid and responsible market.â
ANJL legal director Pietro Cardia Lorenzoni spoke at the STF hearing on Monday and shared the associationâs views that overturning betting laws will empower the black market.
