States debate gambling advertising bans in Brazil: how far does federal authority extend?
The rapid spread of municipal decrees and state bills aimed at restricting gambling advertising may be triggering a new debate over the constitutional powers of individual states. While the federal government has been expanding nationwide rules for the commercial communication of licensed operators, states and municipalities have begun adopting their own measures to limit brand exposure in public spaces and, in some cases, propose even broader restrictions. How far can local authorities go in imposing rules on an activity whose regulation is conducted at the federal level?
In recent weeks, Rio de Janeiro, Belo Horizonte, Aracaju and Cuiabá have announced measures to prohibit betting advertising in public areas, while São Paulo and Paraná are discussing similar proposals. At the same time, the federal government has enacted a new set of rules governing fixed odds betting advertising, making it mandatory to display warnings about gambling risks, strengthening advertiser accountability and prohibiting practices considered abusive, such as campaigns targeting minors or presenting betting as a form of investment.
Although they share similar objectives, these initiatives are based on different legal grounds. The ordinances issued by the Ministry of Finance, the Ministry of Justice and the Secretariat for Social Communication regulate betting advertising throughout the national territory and form part of the federal government’s gambling market regulatory framework. States and municipalities, meanwhile, justify their restrictions based on powers related to urban planning, the use of public property, street furniture and the organisation of events promoted or funded by public authorities.
Federal regulation versus local authority
This is precisely where a constitutional debate may emerge. The Federal Constitution grants the federal government authority to establish general rules in several areas of concurrent legislative competence, while states may supplement this legislation to address regional specificities. Municipalities, in turn, have autonomy to legislate on matters of local interest and regulate the use of their own public spaces. The challenge is to determine where the legitimate exercise of these administrative powers ends and where potential interference begins in a market whose regulatory framework is national.
The issue has not yet received a definitive answer, but it has already reached the Federal Supreme Court (STF). In May this year, the National Association of Gaming and Lotteries (ANJL) filed a Direct Action of Unconstitutionality (ADI) 7971 against a law in Rio Grande do Sul that restricts advertising by betting platforms. In the action, the association argues that fixed odds betting is already regulated at the federal level and that state legislation may exceed the limits of local authority by regulating aspects related to economic activity. According to the association, excessive restrictions could also make it more difficult for consumers to identify authorised operators, indirectly benefiting illegal platforms.
The creation of these local rules may result in a more complex regulatory environment for operators that already hold a federal licence. If different cities and states begin establishing their own advertising criteria, nationally authorised companies may have to adapt their campaigns to the legislation of each jurisdiction, particularly regarding the use of street furniture, public spaces, government-sponsored events and other forms of communication subject to municipal and state regulation. The discussion is therefore not limited to the merits of the restrictions themselves, but also extends to how they can coexist with a regulatory model designed to operate on a nationwide scale.
The debate also finds parallels in other sectors. On different occasions, the Federal Supreme Court has recognised the constitutionality of advertising restrictions and regulatory measures aimed at protecting public health and other fundamental rights. One of the main precedents is the Court’s ruling in ADI 3311, in which it upheld restrictions on tobacco advertising and emphasised that freedom of enterprise and commercial freedom of expression may be subject to proportionate limitations when intended to protect public health.
Article 220, Paragraph 4, of the Federal Constitution itself provides that the advertising of products such as tobacco, alcoholic beverages, medicines and pesticides is subject to legal restrictions. Although this interpretation does not specifically address the division of powers between the federal government, states and municipalities, it demonstrates that the STF accepts limitations on advertising when justified by relevant public interests. In the case of fixed odds betting, the discussion introduces an additional variable: determining whether subnational entities may impose additional restrictions on an activity whose economic regulation and advertising framework have already been established at the federal level.
How states and municipalities are responding
Rio de Janeiro
Rio de Janeiro was the first major municipality to adopt a measure of this kind and ultimately served as a model for other administrations. The municipal decree prohibited advertising by betting platforms in public spaces, including billboards, panels and other urban media structures under municipal control. The stated objective was to protect children, adolescents and people in vulnerable situations, while reducing public exposure to gambling advertising campaigns. The initiative prompted a series of similar actions in other state capitals.
Belo Horizonte
A few days later, Belo Horizonte announced similar restrictions, prohibiting betting advertising in public spaces managed by the municipality and at events organised by public authorities. As in Rio de Janeiro, the measure focuses on the use of municipal property and infrastructure and does not include private property.
Aracaju
Aracaju issued a decree with immediate effect. The regulation prohibits betting advertising on public property and on private property whose advertising requires municipal authorisation, including street furniture, public spaces and facilities managed by the municipality. The text also provides for enforcement by the Municipal Urban Services Company (EMSURB), with penalties including fines, removal of advertising materials and even licence revocation in cases of non-compliance.
Cuiabá
In Cuiabá, Mayor Abilio Brunini stated that the municipality has the authority to regulate advertising in public areas, while acknowledging that it cannot restrict advertisements on private property. The decree, inspired by the model adopted in Rio de Janeiro, prohibits billboards, panels and other forms of betting advertising in publicly accessible spaces.
São Paulo
Although it has not yet issued a municipal decree, São Paulo has already indicated that it may follow the same path. Mayor Ricardo Nunes stated that he intends to sanction a bill on the subject if it is approved by the City Council. At the same time, the debate has also advanced at the state level. State Deputy Carla Morando introduced a bill in the Legislative Assembly proposing to prohibit all forms of betting platform advertising throughout the state of São Paulo, including print and outdoor media, television, radio, social media and other communication channels. If approved, the proposal would have a significantly broader scope than the restrictions adopted by other municipalities.
Paraná
In Paraná, the proposal introduced by State Deputy Ana Júlia focuses on the use of state-owned property and public resources. The bill prohibits the promotion of brands, apps, promotions and other identifying elements of betting operators on public buildings, state highways, official vehicles and sports, cultural or recreational events financed or supported by the state government. The text also requires the prohibition to be observed in contracts, concessions and authorisations involving advertising activities linked to the state.
This article was first published on the Portuguese SiGMA News page on 21 July 2026.
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