ABRASF requests participation in legal action before the Supreme Federal Court against the Betting Law and denounces billion-dollar tax evasion.
The Brazilian Association of Finance Secretaries (ABRASF) has filed a request reiterating its offer to participate as amicus curiae in Direct Action of Unconstitutionality (ADI) 7721, which challenges Law 14.790/23 on sports betting. The document was submitted on September 15, 2025, to the Supreme Federal Court (STF), where the case brought by the National Confederation of Commerce of Goods, Services and Tourism (CNC) is being processed. The entity's first request was made on October 18, 2024.
In its petition, ABRASF argues that the legislation approved in December 2023 by the National Congress presents serious omissions, especially regarding the requirement for betting companies that have been operating in Brazil since 2018 to pay taxes. At the end of the petition, in addition to joining the action as amicus curiae, the entity requests proof of the lawful origin of the funds for the payment of the concession fee and prior collection of taxes due on activities already carried out in the country or destined for Brazilian consumers, even if originating from establishments located abroad, since all are taxable events, especially for ISSQN (Municipal Tax on Services) and IRPJ (Corporate Income Tax).
Billion-dollar tax evasion
The organization presents data on tax evasion in the online betting sector. According to ABRASF, regarding the Tax on Services of Any Nature (ISSQN) alone, the uncollected amounts totaled R$ 310 million in 2022 and R$ 2,7 billion in 2023, with projections reaching approximately R$ 10 billion in 2024.
“As if the fragility and omission of the law regarding mechanisms to prevent money laundering weren't enough, there is another serious leniency and unconstitutional silence in Law No. 14.790/2023: the payment of taxes owed by online betting companies in Brazil since 2018 as a condition for the regularization of their activities in Brazil. Unequivocally, there are tax, fiscal, and financial aspects that must also be analyzed within the request for the annulment of Federal Law No. 14.790/2023,” the association states.
ABRASF highlights that many companies seeking authorization to operate legally were already active in the Brazilian market since the approval of Law 13.756/18, including through affiliated companies, resulting in significant tax delinquency.
“These uncollected resources for the Brazilian public coffers already constitute crimes against the tax order. It is estimated that, only in relation to ISSQN (Tax on Services of Any Nature), the evasion, based on the financial volumes moved, was around R$ 310 million in 2022, R$ 2,7 billion in 2023 and projected to be around R$ 10 billion in 2024. These amounts, which should make up the municipal revenues (creditors of the ISSQN evaded or defaulted on by the betting companies in the last 5 years), and state and federal revenues (IRPJ, PIS/COFINS, etc.), were unduly withheld by the companies that operate online betting in the country since 2018,” details the petition.
The association also points to a gap in the legislation regarding the verification of the lawful origin of funds for payment of the concession fee required by federal law, which increases the risk of money laundering in the sector.
Fux's preliminary decision
Minister Luiz Fux, the rapporteur for the case, issued a single-judge decision on November 13, 2024, ordering the immediate application of measures prohibiting advertising and promotion of sports betting targeting children and adolescents. In the same decision, the minister ordered the implementation of special protection measures to prevent participation in betting with resources from social and welfare programs such as Bolsa Família, the Continuous Benefit Payment, and similar programs.
The minister's decision was preliminary and submitted to the full Supreme Court for review, with immediate effect. At the time, Fux noted that the lawsuits requested the suspension of the effectiveness of Law 14.790/23 regarding the need to mitigate the effects of increased debt levels, as well as the impacts on the mental health of gamblers and their families.
In November 2024, the Brazilian Supreme Court (STF) held a two-day public hearing to discuss the impacts of online gambling in Brazil, hearing from experts and representatives from various sectors. "The public hearing was held on November 11th and 12th, 2024, with the participation of more than 40 (forty) authorized entities," the minister highlighted in his decision. Participants included academics, foreign experts, government entities, representatives of the Executive Branch, the Federal Senate, the Attorney General's Office, Public Defenders' Offices, the Brazilian Bar Association, football clubs, and civil society in general.
ABRASF requests that the Supreme Federal Court recognize the unconstitutionality by omission of Law 14.790/2023 and determine the inclusion of criteria that require proof of the lawful origin of the resources for payment of the concession fee, in addition to the prior collection of all taxes owed by companies on activities already carried out in the country.
ABRASF emphasizes its institutional legitimacy in defending the interests of capital cities and national public finances. To date, 28 amicus curiae briefs have been submitted in ADI 7721 by state governments and civil society organizations.
Click here to read BRASF's petition in ADI 7.721
