Supreme Court Reviews Brazil’s Gambling Prohibition

Brazil.- 6 August 2026 | www.zonadeazar.com Brazil’s Federal Supreme Court will examine on Wednesday 5 August whether the country’s gambling prohibition, established under legislation dating from 1941, remains constitutional.

The court must determine whether treating these activities as criminal misdemeanours is still compatible with the freedom of enterprise principle recognised by Brazil’s 1988 Federal Constitution.

News Details

The discussion will take place through Extraordinary Appeal 966.177, which originated in the state of Rio Grande do Sul and is being reported by Justice Luiz Fux.

The proceedings followed a challenge from the state Public Prosecutor’s Office against a decision issued by the Appeals Panel of the Special Criminal Courts.

That ruling had declined to classify the operation of gambling activities as a criminal misdemeanour, concluding that the decades-old prohibition conflicted with current constitutional principles.

The appeal reached the Federal Supreme Court in 2016 but remained without substantial progress for approximately ten years.

Industry Context

The court will not directly decide whether casinos, bingo halls or the jogo do bicho should be authorised in Brazil.

Its examination will focus on whether these activities can continue to be subject to criminal penalties under legislation enacted more than 80 years ago.

Brazil currently permits and regulates fixed-odds betting through digital channels, while land-based casinos, bingo halls and jogo do bicho remain prohibited.

This distinction has generated questions about regulatory consistency, as the state authorises, supervises and taxes certain online products while maintaining criminal restrictions on physical establishments and other gambling activities.

Next Steps or Impact

A finding that the prohibition is unconstitutional could alter the legal treatment of gambling and increase pressure on Congress to establish specific regulations for activities that are currently prohibited.

However, a favourable decision would not automatically authorise casinos or bingo halls, as their commercial operation would still require legislation, licensing and supervisory rules.

The outcome could also influence other pending Supreme Court proceedings concerning online betting and the constitutionality of Brazil’s regulated wagering framework.

Editó: @fonta