Brazil betting sector warns of legal insecurity and illegal market growth

The Brazilian Institute of Responsible Gaming (IBJR) has warned that delays in a Supreme Federal Court decision regarding provisional measures for sports betting are increasing legal insecurity in the sector. Supreme Court Minister Luiz Fux has scheduled a public hearing for November 3 to discuss the market and lotteries, following a provisional measure issued by President Luiz Inácio Lula da Silva on September 25.

The government measure prohibited the exploitation, offering, intermediation, and advertising of fixed-odds betting in Brazil. According to IBJR executive president Carlos Lima, this has led to a substantial rise in the clandestine market, which is estimated to have grown by 101%, representing approximately R$ 28.1 billion in illegal annual turnover. Established brands like Betano, Bet365, and BetMGM have reportedly faced unauthorized cloning.

Additionally, the IBJR contested claims by the Brazilian Association of Supermarkets (Abras) suggesting that the betting prohibition boosted food retail consumption. The IBJR argues that supermarket growth is driven by macroeconomic factors such as employment, income, and inflation reduction, rather than the betting restrictions.