Brazil: Attorney Gonet Asks Supreme Court to Declare Betting Operators Illegal

Brazil.– December 12, 2025 – www.zonadeazar.com Attorney General Paulo Gonet has asked Brazil’s Supreme Court to rule that the current online betting framework is unconstitutional. Industry leaders warn that such a reversal would create legal uncertainty and jeopardize the country’s progress toward regulated markets.

Overview

The debate on online betting in Brazil intensified after Attorney General Paulo Gonet submitted a request for the Supreme Court to recognize the illegality of betting operators. According to Gonet, the existing legal framework fails to adequately protect consumers and violates constitutional principles related to public health, safety and fundamental rights.

This development comes at a time when Brazil is implementing its regulatory system and attracting substantial domestic and foreign investment. Industry representatives interpret the move as a significant step backward, reopening legal debates previously considered settled.

Details / Context

Gonet’s position is part of a broader action challenging the constitutionality of the legislation that supports online and sports betting. Although the regulatory framework was approved by Congress and sanctioned by the Executive Branch, the Attorney General argues that the system enables a “predatory” market, particularly affecting vulnerable groups.

The case is under review by the Supreme Court, which must determine whether the arguments warrant a full constitutional ruling. No trial date has been set, but the Attorney General’s intervention reintroduces uncertainty into a sector that requires stability to operate, invest and innovate.

The heart of the argument concerns constitutional interpretation: Gonet maintains that the State has a duty to protect citizens from high-risk activities, and that the current regulation does not offer sufficient safeguards. Regulated operators, however, insist that the purpose of the new framework is precisely to organize the market, strengthen responsible gaming policies and suppress illegal operators.

Specific Subtopics

🔹 Regulatory Impact

If the Supreme Court were to rule in favor of Gonet’s request, online betting could be immediately suspended, investments halted and contractual obligations disrupted. This would revive a regulatory vacuum that could take years to resolve.

🔹 Legal Certainty

With Brazil in the most delicate phase of regulatory implementation, any abrupt judicial change risks undermining the predictability required by international operators and investors. Stability is essential to developing compliance structures, monitoring systems and sports integrity initiatives.

🔹 Market Dynamics

Industry representatives warn that declaring betting illegal again would strengthen unlicensed operators. In the absence of a regulated market, illicit platforms thrive, exposing players to greater risks and weakening the tools available to authorities.

🔹 Institutional Considerations

The Attorney General’s stance reflects ongoing institutional debate about the social impact of gaming. While the Prosecutor’s Office highlights risks associated with gambling, the industry argues that regulation—not prohibition—is the most effective way to reduce harm.

Future Outlook

All attention now turns to the Supreme Court, which will determine whether the issue merits constitutional review. The decision will define not only the legal status of the sector but also Brazil’s credibility as a destination for investment and technological development.

Industry stakeholders are expected to intensify dialogue with authorities, offering data and regulatory perspectives that demonstrate how a structured market enhances consumer protection and restricts illegal activity.

The coming months will be decisive for the consolidation—or destabilization—of Brazil’s emerging betting framework.

🔗 Edited by: @_fonta www.zonadeazar.com