Brazil Regulator Raises Constitutional Concerns Over Rio Grande do Sul Betting Ad Restrictions

The controversial legislation was sanctioned in April by Governor Eduardo Leite after being approved by the state’s legislative assembly. The law imposes stricter controls on betting-related advertising within Rio Grande do Sul as Brazil continues to expand regulation of its newly legalised fixed-odds betting market.

In a public statement, the SPA stressed that Brazil’s Constitution grants exclusive legislative power over fixed-odds betting to federal authorities in order to maintain “uniformity throughout the country.” According to the regulator, betting operations fall under the category of federal lottery activities and therefore remain under the supervision of the Ministry of Finance.

The federal regulator also indicated that oversight bodies such as the Attorney General’s Office could challenge the state law through judicial channels if concerns over constitutionality persist. While the SPA stopped short of announcing immediate legal action, the statement clearly signalled growing tension between federal and regional authorities over gambling regulation.

Officials in Rio Grande do Sul defended the measure, insisting the legislation remains fully valid unless a court decides otherwise. The state government argues that local authorities have the right to introduce protections related to public health, consumer safety, and youth exposure to gambling advertising.

The dispute reflects a broader national trend. Despite the Federal Government’s push for centralised oversight of betting regulation, states and municipalities across Brazil continue advancing their own restrictions targeting gambling promotion and sponsorship activity.

According to Brazilian media reports, at least 32 legislative proposals concerning betting advertising are currently being debated across ten states and the Federal District. Several initiatives seek to prohibit betting sponsorships involving publicly funded sports organisations, while others focus on limiting gambling advertisements aimed at minors or restricting influencer marketing partnerships with betting brands.

Meanwhile, municipalities such as Teresina and Rio Branco have already introduced local bans on gambling advertising in certain public spaces and events, further complicating Brazil’s evolving regulatory landscape.