Toffoli Warns Betting Ban Could Drive Activity Underground
Brazil.- 12 August 2026 | www.zonadeazar.com Supreme Federal Court Justice Dias Toffoli has warned of the risks associated with completely banning online betting in Brazil, arguing that such a measure could push a significant share of activity into the illegal market.
At the same time, the Justice acknowledged the negative social consequences associated with the expansion of betting and described the phenomenon as a “social disease” affecting different age groups and sections of society.
News Details
The comments were made on 6 August during the Supreme Court’s consideration of the constitutionality of Brazil’s prohibition on land-based gambling.
Although the case does not directly concern online betting, the discussion broadened to address the regulation of bets and the scale of illegal operators.
Toffoli said he had received information from a financial institution illustrating the size of the clandestine market.
According to the data cited, 15 of the institution’s 20 largest recipients of Pix transfers were illegal betting operators whose corporate registrations subsequently disappeared.
The Justice warned that such operators can take money from consumers and then leave the market without sufficient mechanisms for state supervision or recovery of funds.
Industry Context
Brazil currently operates a federally regulated fixed-odds betting market under Law 14.790/2023.
However, the Supreme Federal Court is considering several gambling-related cases, including proceedings directly challenging the constitutionality of the legislation regulating betting.
During the discussion, Justice Flávio Dino requested additional time to review the land-based gambling case and proposed that the Court consider it alongside other proceedings involving different forms of gambling.
The aim would be to allow the Court to establish a broader constitutional position on the sector.
The proceedings are currently suspended, with no specific date set for their resumption.
Statements
Dias Toffoli said:
“If you ban everything, it goes underground. And illegality is worse because the State has no control.”
He added that controlling online betting platforms operating from countries with which Brazil may not even maintain formal relations represents a particularly complex challenge.
Referring to the illegal market, Toffoli said he had received data from a financial institution showing that 15 of its 20 largest Pix recipients were illegal betting businesses whose corporate registrations subsequently disappeared.
The Justice also described the negative impact of betting as a “social disease” affecting all social classes and age groups.
Next Steps or Impact
The Supreme Court debate will be closely followed by operators, industry associations and legal specialists because of the possibility that several gambling-related cases could ultimately be considered together.
Two proceedings currently before the Court challenge the constitutionality of Law 14.790/2023, which established Brazil’s federal regulatory framework for fixed-odds betting.
Toffoli’s position adds an important element to the discussion: alongside the social risks associated with gambling, policymakers and judges will also have to consider whether prohibition could expand the illegal market and reduce the State’s ability to supervise the activity.
Editó: @fonta
