Brazil operators challenge state betting ad law

Scope of the law
Federal backing for ANJL
A patchwork risk

Brazil’s licensed betting industry body ANJL has filed a direct action of unconstitutionality at the Federal Supreme Court against Law No. 16.508/2026, enacted by the state of Rio Grande do Sul.
The state law bans betting advertising on TV, radio and streaming between 6am and 9pm, requires addiction warnings on all ads, and prohibits odds and bonus mentions in live sports broadcasts.
Federal regulator SPA has said the law may be unconstitutional and indicated that federal bodies could argue the case before the STF.

9The National Association of Games and Lotteries (ANJL) has taken its challenge to a Rio Grande do Sul advertising restriction law to Brazil’s Federal Supreme Court, filing a direct action of unconstitutionality in Brasília on 18 May.

Scope of the law

Law No. 16.508/2026 was signed by Governor Eduardo Leite on 24 April and came into force on 27 April. It was originally introduced as a bill by state deputy Tiago Simon.

The law bans betting advertising on television, radio and streaming platforms between 6am and 9pm. It requires mandatory addiction warnings to cover at least 15% of every betting advertisement, prohibits content targeting or featuring minors, and outlaws the promotion of bonuses, odds or gambling advantages in any form. Operators have 120 days from the law coming into force to comply.

Enforcement falls to the Programa de Proteção e Defesa do Consumidor do Rio Grande do Sul (PROCON-RS). Penalties for non-compliance include warnings, financial sanctions and licence suspension.

The action, registered as ADI 7971 and distributed to Justice Cármen Lúcia, requests the law be declared entirely unconstitutional on formal and material grounds. Subsidiarily, ANJL seeks a partial unconstitutionality finding, or at minimum an interpretation that would exempt federally licensed operators from the state’s enforcement regime.

Federal backing for ANJL

ANJL argues the state law trespasses on the federal Union’s exclusive competence over lotteries, advertising and telecommunications, as set out in Article 22 of the Federal Constitution.

ANJL, National Association of Games and Lotteries, said:

“If the legislative competence over consortium and lottery systems is exclusive to the Union, then only the National Congress may issue primary rules on the matter.”

The federal regulator has taken the same position. The Secretariat of Prizes and Betting (SPA) of the Ministry of Finance has said the law may be unconstitutional, arguing that only the National Congress can legislate on fixed-odds betting to ensure uniformity across the country.

Per a statement reported by JOTA, the SPA added that competent federal bodies, including the Attorney General’s Office, can act in the appropriate sphere to raise and demonstrate any potential unconstitutionality.

The government of Rio Grande do Sul has confirmed, through its Civil House, that the law remains valid until a court rules otherwise.

A patchwork risk

Law No. 16.508/2026 was the only state-level betting advertising statute to have been sanctioned in Brazil at the time of ANJL’s filing. However, at least 32 bills on the same subject are under consideration across ten states and the Federal District, per a JOTA survey.

The central issue goes beyond the betting market itself. It concerns the limits of state authority over advertising content broadcast on radio, television and other media subject to nationwide federal regulation.

A ruling in ANJL’s favour would consolidate federal control over advertising across the sector. A ruling for Rio Grande do Sul would open the door to a patchwork of sub-national advertising regimes across Brazil’s 26 states and Federal District.

ANJL previously engaged at STF level during the court’s 2024 public hearing on the constitutionality of the core betting law, where it argued that overturning the federal framework would drive growth in Brazil’s illegal market. The STF has not yet set a date for ADI 7971 to reach the plenary.

For operators managing Brazil ad spend and compliance costs across a fast-moving regulatory landscape, the outcome will set a significant precedent for how far state governments can legislate over federally licensed activities.

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