Brazil's Attorney General's Office requests suspension of Rio Grande do Sul state law restricting sports betting advertising.
The Attorney General's Office (PGR) has expressed its opinion that Law 16.508/2026 of Rio Grande do Sul is unconstitutional and requests the granting of a precautionary measure to suspend its effectiveness. The opinion, signed by the Attorney General of the Republic, Paulo Gonet Branco, was filed this Monday (August 17).
The law in Rio Grande do Sul establishes restrictions on advertising, promotion, and sponsorship of fixed-odds sports betting platforms within the state. The case is being processed in the Supreme Federal Court (STF) as Direct Action of Unconstitutionality (ADI) 7.971, under the rapporteurship of Minister Cármen Lúcia, and could become a leading case regarding the validity of the numerous municipal and state laws that have prohibited or created restrictions on advertising for online betting and gaming platforms in the country, establishing a binding precedent for all lower courts.
The lawsuit was filed by the National Association of Games and Lotteries (ANJL), a nationwide entity representing companies that operate fixed-odds betting. The Attorney General's Office (AGU) also argued in favor of granting the injunction, on the grounds that the state law encroaches on the exclusive powers of the Federal Government.
Arguments from the Attorney General's Office
According to the Attorney General's Office, the Rio Grande do Sul state law is not limited to peripheral consumer protection measures. The legislation establishes its own regime for advertising, sponsorship, oversight, accountability, and sanctions for fixed-odds betting platforms, a matter that the Constitution reserves exclusively for the Federal Government under Article 22, items XX and XXIX.
Gonet Branco acknowledges that the current federal legislation, Law 14.790/2023, is insufficient to protect fundamental rights from the effects of the virtual betting market. However, he argues that this insufficiency does not transfer legislative competence to the states. The opinion reiterates arguments already developed in ADI 7.749, in which the Attorney General's Office concluded that "the activity of betting, still insufficiently regulated, becomes a criminal offense, as defined in the Law of Criminal Contraventions, until suitable legislation is enacted."
The Brazilian Supreme Court's Binding Precedent No. 2 is cited to reinforce the argument; the precedent prohibits state laws or regulations governing consortiums and lotteries. The opinion also cites the joint judgment of ADPFs 492 and 493 and ADI 4.986, in which the Court recognized the exclusive competence of the Union to legislate on the subject, and RE 1.498.128, the paradigm of General Repercussion Theme 1.323, which established the principle that "the execution of the public lottery service by private agents depends on state delegation preceded by bidding."
Disputed devices
The opinion points out that several articles of the Rio Grande do Sul state law encroach upon additional regulatory fields reserved for the Union by Article 22, item IV, of the Constitution, which deals with telecommunications and broadcasting. These are the rules governing audiovisual broadcasting, content removal, website blocking, provider duties, and the responsibility of private agents.
The Attorney General's Office also identifies a violation of the Union's exclusive competence in matters of Civil and Commercial Law (art. 22, I). Article 9 of the state law establishes joint liability between platforms, advertising agencies, media outlets, and providers. Article 10 imposes duties of monitoring and removing content. Article 14 mandates that companies already operating in the state adapt their advertising campaigns and sponsorship contracts within 120 days.
The law stipulates, among other restrictions, that audiovisual advertising for betting can only be broadcast between 21 pm and 6 am on free-to-air television, pay TV, streaming services , and radio. It also requires that advertisements display warning phrases in a font size equivalent to at least 15% of the total advertisement area and prohibits advertising near schools, daycare centers, and sports venues primarily aimed at minors.
Suspension effect
The Attorney General clarifies that the eventual precautionary suspension of the law would not authorize the advertising of betting in Rio Grande do Sul. On the contrary; if the assessment that the current federal legislation is insufficient is maintained, the suspension would have the effect of preserving the illegality of the activity in the state, subjecting operators to the administrative and criminal sanctions of federal law.
According to the opinion, the danger in delay stems from the fact that the law is already in effect and producing effects on contractual relationships, sports sponsorships, media outlets, and digital platforms. Paulo Gonet also suggests that the preliminary injunction be converted into a final ruling, given the comprehensive way in which all issues relating to the unconstitutionality of the Rio Grande do Sul state law have already been addressed by the parties in the proceedings.
Petition from the Attorney General's Office
