Brazil's betting ban debated at Supreme Court as industry warns of a growing illegal market

Brazil's ban on betting was the subject of a public hearing at the Supreme Federal Court (STF) on Tuesday, where 34 entities gave views on Provisional Measure 1.394. Industry representatives cautioned that prohibition could drive more gambling activity to unregulated operators, while government officials said the previous regulated model had failed to protect consumers.

The Ministry of Justice said it had asked for 36,905 websites to be removed between 25 September and 29 October. Industry speakers argued that, with licensed operators playing a smaller role in monitoring, enforcement against illegal betting could become harder. Pietro Cardia of the National Association of Games and Lotteries (ANJL) said betting volumes fell 32% in the last three months of Ministry of Finance data compared with a year earlier, and that over 60% of the market had been regulated before the ban.

Lawyer Udo Seckelmann, speaking for the football club Botafogo, cited figures showing that the Secretariat of Prizes and Bets (SPA) had authorised 188 websites, while more than 66,000 illegal sites had been blocked during 20 months of regulation. Representatives said licensed operators had built systems to flag suspicious betting and had backed efforts against match-fixing and money laundering. São Paulo FC's representative said clubs had taken on duties such as educating athletes and staff and setting up reporting channels. The worry, they said, is that a move to unlicensed platforms would weaken these safeguards, since illegal operators face no comparable obligations.

The government defended the measure. Justice Minister Wellington César Lima e Silva called betting platforms an "architecture of dependency". Health Minister Alexandre Padilha presented indicators on problematic gambling and suicide, and Attorney General Jorge Messias said the earlier regulatory model had not adequately protected families.

Spending was another point of contention. Ana Clara Marques de Barros Santos, representing Aigaming, pointed to SPA figures showing that 70% of bettors spent up to BRL50 a month and that average sessions lasted 12 minutes, which the industry used to challenge claims of heavy household spending. The Brazilian Association of Supermarkets, the National Confederation of Commerce and the National Confederation of Industry opposed betting, citing consumption, indebtedness and health concerns.

The ANJL is challenging the measure and has asked Minister Luiz Fux to suspend it while the court considers the case. Fux will decide the next steps. The hearing left open whether the risks of betting are better handled by prohibition or by a regulated market with stronger consumer protections.