Brazil’s Attorney General Seeks Suspension of Rio Grande do Sul Betting Advertising Law
Brazil’s Attorney General’s Office (AGU) has asked the Supreme Federal Court (STF) to suspend Rio Grande do Sul’s Law No. 16.508/2026, which provides strict limits on betting platform advertising.
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In this respect, the Attorney General’s Office submitted the request during Direct Action of Unconstitutionality No. 7971, which was initially launched by the National Association of Gaming and Lotteries (ANJL). The new state law should enter into full effect on August 25, 2026.
According to the new law, operators need to publish a series of mandatory warnings on their advertisements related to gambling. For example, one of the warnings states that “participation by persons under 18 years of age is prohibited.” Moreover, audiovisual advertising of the platforms is limited to the time period from 9:00 p.m. to 6:00 a.m.
Authorities Justify New Restrictions with Consumer Protection Reasons
Other provisions of the bill prohibit advertising near schools, medical institutions, and areas where there is a high percentage of minors present. Moreover, enforcement responsibilities were granted to PROCON–RS and include sanctions such as fining, blocking betting websites, removing advertisements, and even suspending/canceling licenses for noncompliance.
Furthermore, the law introduces joint liability among betting platforms, advertisement agencies, media houses, and internet providers regarding the removal of illegal content. The transition period for compliance amounted to 120 days, while revenues earned through fines will support consumer protection activities and prevention measures.
According to state authorities, it is justified to introduce more severe advertising restrictions to protect consumers, children, adolescents, and families. The legislation covers the concurrent powers of states regarding public health, consumer rights, and child protection stipulated in the Brazilian Constitution.
Legislation on Advertising Is Exclusive to the Union
Overall, the Attorney General’s Office submitted four main reasons in favor of suspending the new law. The first one concerns the Federal Constitution article, according to which the Union has exclusive power to legislate on commercial advertising issues.
In its filing, AGU claimed that Brazil already has a comprehensive federal framework for regulating betting advertising through Law No. 14.790/2023 and regulations of the Ministry of Finance. In the AGU’s opinion, the Rio Grande do Sul legislation introduces a conflicting regulatory regime rather than supplements federal norms.
Moreover, the Attorney General’s Office noted the differences in the requirements compared to federal legislation, including larger mandatory notices.
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Constitutional Violations Related to Other Matters
The second argument concerns the fact that betting can be considered a lottery-related activity that can be regulated exclusively by the Union according to the Federal Constitution.
The third argument touches upon telecommunications and broadcasting. Specifically, the Attorney General’s Office claims that the provisions related to limiting the time of advertisements, blocking betting sites, and imposing duties on internet providers are related to the nationally regulated communication service.
Finally, the AGU claims that the law violates civil and commercial laws because it introduces joint liability among private subjects and establishes certain obligations for businesses.
Market Risks and Uncertainty Created by the Law
In addition to constitutional violations, the Attorney General’s Office warned about the risks of maintaining the new law. Namely, companies will face legal uncertainty in case of having both federal and state requirements, which creates conflicts.
Furthermore, the federal government is concerned that stricter restrictions may lead to the development of illegal betting websites, as they will gain additional visibility. Therefore, customers can find themselves at risk since unregulated sites do not follow consumer protection and responsible gambling standards.
According to AGU, “the maintenance of the law prior to the final decision leads to an environment of legal uncertainty that is incompatible with the need for uniform federal legislation in this matter.” Thus, the agency believes that there are valid legal reasons to suspend the law.
The Attorney General’s Office officially requested the suspension of Law No. 16.508/2026 until the final decision by the STF in this case.
Now, the Court will hear submissions made by the federal government, ANJL, Governor of Rio Grande do Sul, and the State Legislative Assembly. Justice Cármen Lúcia already referred the case to the Prosecutor General’s Office to deliver an opinion.
Source: BNL Data
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