Brazil: Public Hearing on the Ban on Fixed-Odds Betting at the STF
Brazil.- November 05, 2026 www.zonadeazar.com During a public hearing held by the Federal Supreme Court (STF) on Tuesday (Nov. 3) to discuss the impacts of Provisional Measure 1,394/2026, which prohibits fixed-odds betting in Brazil, economist Eric Brasil, of LCA Consultoria Econômica and a representative of the Brazilian Association for Economic Freedom, presented the results of a study that challenges the data used against the sector.
According to the analysis, there is no evidence to attribute the population’s indebtedness to betting. The study identifies three structural factors that explain this situation: excessively high interest rates, widespread availability and unregulated use of credit lines, and low levels of financial literacy.
The economist also addressed the economic impact of the industry, emphasizing that betting does not simply represent a drain on the country’s wealth. A large portion of operators’ gross revenue is returned to society through tax payments, operating costs, and associated expenses. The study estimates that the tax burden on the sector in 2025 was approximately 32 percent, with funds allocated to areas such as sports, tourism, public safety, education, social security, and health care.
When analyzing the relationship between the sector and food consumption, based on data from the Brazilian Supermarket Association (ABRAS), no evidence of a causal link was found between restrictions on legal gambling and an increase in supermarket purchases. Food retail had already been showing growth compared to the previous year for much of 2026, a period during which other measures affecting the population’s income also took effect.
Concluding his presentation, the ABLE representative warned about the expansion of the illegal market following the enactment of Provisional Measure 1,394/2026. Data from the LegitBet system, adopted by the Federal Police, point to a strong correlation between the operations of clandestine websites and the provisional measure. With an immediate surge in demand, the figures indicate that unregulated operators see a clear market opportunity in the context of the ban.
Key points from ABLE’s testimony at the hearing
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Official Statement – Brazilian Institute for Responsible Gaming (IBJR)
The Brazilian Institute for Responsible Gaming (IBJR) emphasizes the importance of the debate on the betting sector during the public hearing held by Minister Luiz Fux this Tuesday (November 3). This public and democratic forum is essential for ensuring that the issue is addressed with transparency and responsibility, based on data, evidence, and the participation of all stakeholders: the industry, sports clubs, the government, and society.
As Minister Luiz Fux rightly pointed out, gathering data and different perspectives is essential to ensure that the decision takes all sides into account. Representatives from betting companies were not heard at the previous public hearing.
The institutions representing the regulated betting sector hope that the hearing will help restore legal certainty. The regulations under Law 14.790/2023, in effect since 2025, have generated thousands of direct and indirect jobs, investments across various sectors, budget revenue, and consumer protection mechanisms. The abrupt suspension of activities affects contracts, workers, and the confidence of those who have invested in the country.
The figures also need to be interpreted accurately. Household debt has structural causes linked to various factors, including the credit market, and the data do not allow us to associate delinquency with any specific consumption pattern.
Nor is it correct to say that legal gambling detracts from GDP, ignoring the fact that most of it returns to the economy through taxes, social spending, wages, suppliers, and investments. The same applies to consumption, since the growth in food retail predates Provisional Measure 1,394/2026, and ABRAS’s own data do not support a causal relationship with the ban on betting.
Banning the regulated market has not put an end to the habit of gambling: it merely pushes bettors into the illegal market, leading to a widespread increase in clandestine offerings and the dissemination of illegal links. In this environment, there are no age verification measures, spending limits, or self-exclusion options, and the risk of organized crime involvement grows. Only the regulated market allows the government to protect and enforce regulations.
The IBJR remains at the disposal of the STF to foster dialogue and advocates for stricter rules and effective oversight, because banning does not equal protecting.
Edited by @pererarte www.zonadeazar.com
