Brazil's top court to mull gambling ban vs. constitution
April 23, 2026, will be a decisive date on the calendar for the entertainment industry in Brazil. The President of the Supreme Federal Court, Edson Fachin, has officially included on the plenary agenda the trial that will determine the validity of the criminalization of gambling in the country. Under the rapporteurship of Minister Luiz Fux, the analysis of Extraordinary Appeal 966.177 could radically transform the current legal landscape and open the doors to an unprecedented market opening across the national territory.
This judicial process has its roots in a controversy that began more than a decade ago in the state of Rio Grande do Sul. At that time, an appeals court dismissed the practice of gambling as a minor offense, arguing that the prohibition established in the 1940s directly conflicted with the principles of freedom of initiative and fundamental guarantees protected by modern legislation. Now, the country's highest court must decide whether the Law of Criminal Misdemeanors of 1941 is compatible with the spirit and rights enshrined in the 1988 Constitution.
Minister Luiz Fux has indicated in various communications that the issue is of an eminently constitutional nature and possesses a relevance that transcends the particular case. According to his analysis, the debate encompasses large-scale economic, political, and social dimensions, especially at a time when Brazil is seeking new sources of revenue and greater transparency in its financial markets. The final decision will determine whether the State can continue to apply prison sentences of up to one year and fines that can reach 200,000 reais to those who operate gaming rooms in public spaces.
The Supreme Court's intervention comes in a context of strong political tension in the National Congress. While Bill 2.234/2022, which seeks to authorize the regulated operation of casinos, bingos, and the traditional jogo do bicho, faces resistance to being voted on in the Senate plenary, a favorable ruling by the Supreme Court could force an immediate resolution. Because the verdict will have national and instant application effects, the iGaming sector and land-based operators across the continent are keeping a close eye on Brasília for what could be the most significant regulatory change of the decade.
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