Municipal decrees and bills restricting fixed-odds betting advertising are spreading across Brazil, reigniting debate over legislative authority in the sector.
Rio de Janeiro, Belo Horizonte and Aracaju have already passed their own rules, while São Paulo, Cuiabá, Teresina, Recife and Goiânia are considering similar proposals, a fragmented movement unfolding while the Federal Government's regulatory framework is still being implemented.
Mayors, city councilors, governors and state legislators are responding to the backlash against online betting advertising that intensified during the World Cup, arguing that the rules set by President Lula's Federal Government don't go far enough.
The most prominent case came from Rio de Janeiro, where mayor Eduardo Cavaliere signed a decree banning betting ads in public spaces, describing betting operators as a "plague."
In Rio Grande do Sul, a state law signed in April sets advertising rules for betting platforms, including time restrictions on TV and streaming broadcasts.
Industry representatives note that public-space advertising accounts for a small share of betting marketing spend, most of which goes toward contracts with influencers, athletes and football clubs.
To keep the issue under federal jurisdiction, the National Association of Games and Lotteries (ANJL) has filed a direct unconstitutionality lawsuit at the Supreme Court (STF), arguing local laws create a "repugnant situation of inequality" for federally licensed operators compared with those in other states.
The Federal Government, through the Attorney General's Office (AGU), backs ANJL's position in the case, arguing that restricting advertising for licensed operators strengthens the illegal betting market, whose sites don't pay Brazil's BR30m ($5.9m) licensing fee, by reducing the visibility of authorized operators.
The AGU says its role is to defend the federative pact and ensure compliance with legal norms and that local rules create legal uncertainty for authorized companies and undermine national regulatory consistency.
A Federal Government ordinance tightening betting advertising rules took effect recently, requiring licensed operators to display Finance Ministry warnings about the risk of financial loss and dependency
