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iGaming.News
Gambling LawFriday, 15 November 2024 · 1:33pm GMT · 2 min read

Brazil's Supreme Court Enforces Stricter Protections for Bets Regime

On Wednesday, Minister Luiz Fux issued an order amending Ordinance No. 1231 to prohibit online gambling using funds from social programs.

SGStephen GuppyEditorial Team
Brazil's Supreme Court Enforces Stricter Protections for Bets Regime

The Supreme Court of Brazil (STF) has intervened to strengthen protections for vulnerable groups as the country prepares to launch its federal online gambling marketplace in January 2025.

On Wednesday, Minister Luiz Fux issued an order amending Ordinance No. 1231 to prohibit online gambling using funds from social programs. The intervention also mandates measures to prevent gambling advertisements targeting Brazil’s youth (under-18s) across sports, sponsorships, and media platforms.

Concerns had been raised in October when reports revealed that BRL 3 billion (€500 million) from Bolsa Família beneficiaries were spent on betting sites. Bolsa Família, Brazil’s primary welfare program, supports around 50 million citizens, with subsidies provided to approximately 3 million families.

Minister Fux highlighted the urgency of these measures, stating:

“The current scenario of obvious insufficient protection, with immediate harmful effects, especially on children, adolescents, and the family budgets of assistance program beneficiaries, constitutes a manifesto periculum in mora [danger in delay], which must be eliminated immediately.”

The National Association of Games and Lotteries (ANJL) endorsed the court's decision, calling it a vital step toward responsible gambling policies. ANJL stated:

 “Unlike companies that intend to remain outside the law from 2025, bets committed to honest and responsible gambling, including those associated with ANJL, do not tolerate advertising to minors or practices that harm vulnerable families.”

Ordinance No. 1231 is a cornerstone in the framework for Brazil’s upcoming Bets regime, which has been developed by the Secretariat of Prizes and Betting (SPA). Earlier this year, SPA implemented a phased plan to establish regulatory duties, including ordinances on IT security, AML compliance, and licensing. Ordinance No. 1231 finalizes rules governing marketing, communications, and advertising within the new market.

Two Senate-led inquiries will further evaluate the Bets regime following its launch. The CPI of Bets, chaired by Senator Soraya Thronicke, will assess the financial impact of online gambling on citizens and family finances. Meanwhile, the CPI of Integrity, led by Senator Jorge Kajuru and Senator Romário, will investigate gambling's impact on sports integrity and efforts to prevent match-fixing.

These actions solidify Brazil’s commitment to a regulated, responsible gambling environment, protecting citizens while paving the way for a robust federal online gambling market.

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