Ban on betting advertising sparks legal debate between the federal government, states, and municipalities.
Four Brazilian state capitals have already banned sports betting advertising in public spaces, and at least three others have bills in progress with the same objective. This movement is occurring in parallel with the tightening of federal regulations for the sector, which came into effect this Thursday (July 17).
A survey published by O Globo shows that Rio de Janeiro, Belo Horizonte, Rio Branco, and Teresina already have their own regulations in effect. São Paulo, Recife, and Goiânia are considering similar proposals in their city councils. Ten other states and the Federal District are also discussing legislation to restrict advertising by betting platforms.
Decrees in the capitals
In Rio de Janeiro, a decree published in the municipal Official Gazette this Monday (July 14th) prohibited the display of advertisements from the sector in public spaces in the city. The restriction covers street furniture, building facades, highway right-of-ways, airspace and maritime areas, as well as campaigns promoted or sponsored by the city hall. On the morning the rule came into effect, municipal agents covered two billboards with advertisements for betting sites near Pedra do Sal, in the city center, and in Copacabana.
Belo Horizonte followed a similar path the next day. Mayor Álvaro Damião (União) published a decree prohibiting the advertising of betting establishments on street furniture, public equipment, and municipal properties, including concessions, permits, authorizations, and events promoted by the public authorities. The city hall has 15 business days, starting from July 1st, to adapt existing contracts.
In São Paulo, a bill authored by councilman João Jorge (MDB) prohibits the advertising of online betting and gambling at events organized by public and private entities, whether for profit or non-profit, including sporting competitions held in the capital. The text has already passed through the Constitution and Justice Committee (CCJ) and awaits a vote in plenary. The São Paulo city hall informed that Mayor Ricardo Nunes (MDB) intends to sanction the proposal "as soon as it is approved by the City Council."
Dispute over legislative competence
The state of Rio Grande do Sul is the center of the main legal battle over jurisdiction to regulate gambling advertising. In April, Governor Eduardo Leite (PSD) signed a law imposing restrictions on advertising for fixed-odds betting platforms in the state. The law requires warnings about the risks of gambling in advertisements, prohibits the use of animations, mascots, and characters appealing to children and teenagers, bans advertising targeted at minors under 18, and limits advertisements on TV, radio, and streaming services to the hours between 21 pm and 6 am.
The law in Rio Grande do Sul is the subject of a Direct Action of Unconstitutionality (ADI) filed with the Supreme Federal Court (STF) by the National Association of Games and Lotteries (ANJL). The organization argues that the state has encroached on the exclusive competence of the Union by creating its own rules for advertising in a sector governed by federal legislation.
The Attorney General's Office (AGU) endorsed the request in an opinion sent to the Supreme Federal Court (STF) and defended the suspension of the rule. The document argues that the Constitution exclusively grants the Union the power to legislate on commercial advertising, lotteries, broadcasting, and telecommunications. The Secretariat of Prizes and Bets (SPA), linked to the Ministry of Finance, itself cited the possible unconstitutionality of the Rio Grande do Sul law in the same case.
According to the Attorney General's Office (AGU), the state legislation creates legal uncertainty for companies authorized by the federal government and compromises the uniformity of national regulation. The opinion requests the suspension of the law's effectiveness until a final judgment is reached in the case. In a statement, the agency clarified that it does not analyze proposals under consideration in states and municipalities, only commenting when these proposals become laws and are the subject of legal action.
The Attorney General's Office of the State of Rio Grande do Sul reported that the law remains valid until there is a contrary court decision. The agency affirms that it "defends the full constitutionality" of the law and says that the state government is "in the process of issuing regulations that will detail the procedures for monitoring and applying the rules already provided for in the legal text."
Legal debate and advertising impact
Attorney Pedro Serrano, specializing in Constitutional Law, explains that municipalities have jurisdiction to deal with issues of predominantly local interest, while states have what is called residual jurisdiction, for matters that are not of interest to either the Union or the municipalities. According to him, betting and advertising of bets are, in theory, a federal matter.
Serrano points out, however, a possible gray area: “If local laws refer exclusively to municipal property, for example, prohibiting betting advertising on municipal property, then there could be a generic prohibition. What could lead the Supreme Court to consider these laws unconstitutional is the fact that they deal with advertising on social media, in general media.”
In the advertising sector, the Brazilian Association of Advertising Agencies (ABAP) believes that the impact of the proposals "goes far beyond betting houses." The organization points out that the proliferation of different rules between states and municipalities generates legal uncertainty, hinders campaign planning, and affects the entire advertising chain, including agencies, media outlets, production companies, outdoor media companies, digital platforms, and content creators.
In a statement, ABAP warns: “What worries ABAP is not regulating betting advertising, but doing so through parallel and uncoordinated channels, at a time when the federal framework itself is being calibrated and will still produce effects that need to be observed before being replaced.”
ANJL, in turn, reported that it is following the legal developments of the municipal decrees "with concern" and reiterated that any limitations on advertising should be addressed at the federal level. The entity stated that it will take appropriate legal measures to enforce national regulations and argued that the municipal initiatives affect "a regulated market that pays taxes and generates jobs, without confronting illegal gambling." The Brazilian Institute for Responsible Gambling (IBJR) reported that it "will not comment on the matter for now."
