Justice Edson Fachin, president of the Supreme Federal Court (STF), met with Dario Durigan, Brazil’s minister of finance, on 15 July.
The meeting focused on the operations of betting companies in Brazil. Discussions covered combatting illegal platforms, improving sector regulation, and the cases currently under review by the Court. During the meeting, Durigan asked Fachin to uphold decisions preventing municipalities from granting authorisations for betting operations and states from issuing national licenses to betting companies.
Fachin stated that the Court is expected to move forward in the second half of the year with the trial of lawsuits related to betting operations. “When examining these matters, the Supreme Court will certainly take into account everything already gathered in the case records and during public hearings, as well as the entire debate that will take place in the Plenary,” he said.
According to Fachin, these cases will allow the STF to address an issue of great importance to society and Brazilian families, particularly given the impact of betting on vulnerable individuals.
“This engagement manifests not only in the review of the Ministry of Finance’s regulatory measures but also in the responses the Court has already begun to provide by granting preliminary injunctions aimed at implementing urgent protective measures,” he stated. “Now, we will examine the merits of these claims.”
Meaningful dialogue between the institutions
Dario Durigan presented data on government actions in the sector. The government has already blocked 56,000 illegal betting sites, apps, and platforms. He stated that the regulated market comprises 85 authorised operators. The minister noted nearly 1 million self-exclusion registrations. He highlighted joint operations with the Federal Police and measures to prevent social programme beneficiaries from accessing the platforms.
Durigan reinforced the stance of “zero tolerance” toward illegal betting sites. “I pledged to Justice Fachin that I would provide regulatory updates, reflecting President Lula’s commitment to a permanent crackdown on illegal betting sites and strict oversight of legal ones,” he stated.
In the minister’s view, the meeting represented a “significant institutional dialogue.” The information provided may contribute to the analysis of the cases, alongside evidence already gathered in the court records and during public hearings held by the Tribunal.
Monitoring
According to Durigan, the government aims to expand monitoring of betting volumes, user indebtedness, and impacts on the population. This information is intended to guide regulatory adjustments, particularly regarding advertising, bettor protection, and the prevention of illicit activities.
Cases in the Supreme Court
Among the lawsuits addressing online betting are the Direct Unconstitutionality Actions (ADI) No. 7721, 7723, and 7749, assigned to Justice Luiz Fux. The cases address issues such as consumer protection, the impact of betting on mental health, the use of social benefits, advertising targeted at children and adolescents, and the adequacy of the regulations enacted to govern the sector.
When it comes to ADIs No. 7721 and 7723, in November 2024, the STF upheld precautionary measures to prevent the registration of social programme beneficiaries on the platforms. It also suspended betting advertisements targeted at children and adolescents. The merits of both lawsuits have yet to be adjudicated.
ADI No. 7749, however, filed by the Prosecutor General’s Office, seeks a declaration of unconstitutionality regarding the laws regulating fixed-odds betting and the Ministry of Finance’s ordinances. The request for a total suspension of operations has not yet been reviewed.
Municipalities
The authority of municipalities to establish or authorise lotteries and gambling is addressed in ADPF (Non-compliance with Fundamental Precept) No 1212, with Justice Nunes Marques serving as rapporteur. In December 2025, the rapporteur suspended municipal laws, decrees, and other acts regarding lotteries. The decision is still subject to ratification by the full Court.
Another territorial dispute is being examined in Original Civil Action No. 3696, under the rapporteurship of Justice André Mendonça. In March 2025, the Plenary upheld a decision requiring Loterj to implement geolocation mechanisms to prevent bets placed outside the state. A final ruling on the lawsuit has not yet been issued.
In ADI 7640, the Supreme Court declared unconstitutional provisions that prevented a single economic group from operating lotteries in more than one state. Furthermore, these provisions restricted the advertising of state lotteries to the territory of the authorising entity. The merits of the case were adjudicated in September 2025, but appeals seeking clarification of the decision remain pending.
Also pending before the STF is ADI No. 7971, with Justice Cármen Lúcia serving as rapporteur. This case challenges a law from the state of Rio Grande do Sul that restricts advertising for sports betting operators. The law imposes time-slot limitations, mandatory warnings, and a ban on stadium advertisements. The case is currently in the evidentiary phase.
Decriminalisation of gambling
The Court has yet to rule on Extraordinary Appeal No. 966177, recognised as having general repercussion (Theme 924)—with Justice Luiz Fux serving as the reporting justice. The case addresses whether the ban on games of chance, set forth in the Law on Criminal Misdemeanours, is compatible with the Constitution. The decision will impact other cases involving the same legal issue. The discussion of the matter is scheduled to go to the floor on 5 August.
Original article: https://igamingbusiness.com/legal-compliance/regulation/brazil-supreme-court-ministry-finance-illegal-betting/
