States and capitals move forward with restrictions on betting advertising under resistance from the Lula government

At least five capitals and two states have presented measures to restrict betting advertising. One of the most high-profile cases came from Rio de Janeiro city hall, which last week issued a decree banning advertisements of this type. At the time, Mayor Eduardo Cavaliere (PSD-RJ) called betting a "plague".

The restrictions are against advertising in public places and sporting events or those held by the public administration. In some cases, they even establish advertising placement times.

The federal government disputes the competence of states and municipalities to deal with the issue. One of the arguments cites article 22 of the Constitution, which says that the power to legislate on propaganda is exclusive to the Union.

Lawyers interviewed by the report say that there are differences in the powers of states and municipalities. Many cities already have laws regulating types of advertising. The mayor can publish a decree to detail a practical aspect of the legislation, preventing, for example, certain advertisements from being placed near schools to protect minors.

On the betting side, advertising in public spaces accounts for a small portion of the marketing operation, normally anchored in large contracts with influencers, athletes and football clubs. The fear of sector representatives is that certain laws and decrees will pave the way for a series of restrictions.

To keep the matter within the federal government, ANJL (National Association of Games and Lotteries), one of the entities that represents the sector, had already filed a direct action of unconstitutionality (ADI) with the STF (Supreme Federal Court). The entity argues that local laws create a "disgusting situation of inequality" for the operations of companies with federal permission compared to other states.

In the action, the Lula government reaffirms ANJL's arguments. For the AGU (Attorney General of the Union), the restriction on advertising by authorized operators contributes to the strengthening of the clandestine betting market -sites that do not pay the R$30 million license fee-, by reducing the visibility of licensed operators.

In a note, the AGU says that its role is to represent and defend the Union "in order to ensure the federative pact and due respect for legal norms."

In Rio Grande do Sul, a state law sanctioned in April establishes standards for advertising on betting platforms, including time limitations for TV broadcasts and streaming. For the government of Rio Grande do Sul, the measure does not violate the Union's exclusive jurisdiction.

Governor Eduardo Leite (PSD) says he intends to apply local regulations rigorously within the state's competences to face the "serious consequences for public health" generated by the "disorderly proliferation of online betting".

According to the president of ANJL, Plinio Lemos Jorge, the case of city halls is different from the law in Rio Grande do Sul because it deals with janitorship. According to him, the entity analyzes whether the decrees will have an effect on street events such as Carnival and São João - held with large bet sponsorships - and studies which legal resources are applicable. "If they are going to restrict us, they also need to limit drinks and tobacco, to maintain the equality of the rules."

The mayor of São Paulo, Ricardo Nunes (MDB), also intends to create local legislation. He promised that he will sanction a bill by councilor João Jorge (MDB) that prohibits advertising by betting houses at sporting events in the capital as soon as the proposal is approved by the City Council.

Outside the capital, the municipalities of Valinhos and Santos are also discussing similar projects.

Cavaliere, current mayor of Rio, said his decree could influence Congress to increase barriers to advertising on betting sites. "We realized in Rio de Janeiro that, if we don't limit the advertising of bets, they will occupy public space as a whole. This naturalizes an activity that can be harmful to families."

The federal government published an ordinance that tightens betting advertising rules and came into force this Friday (17). The rule obliges authorized companies to display warning messages from the Ministry of Finance warning about the loss of money, the risk of addiction and the fact that betting is not an investment, in addition to prohibiting marketing strategies such as promises of enrichment.See below details of local regulations for betting advertising.*RULES IN RIO GRANDE DO SULLLaw sanctioned by the governor in April establishes standards for advertising betting platforms, in any form. A transition period was established that ends on October 24th. The text prohibits the placement of advertising in stadiums, gymnasiums, sports venues and public shows. The advertising of promotional odds and bonuses, such as those that became the target of an investigation by the Ministry of Justice during the World Cup broadcast, is prohibited. The law also limits the broadcasting of advertisements on TV, streaming platforms and radio to the interval between 9pm and 6am. The promotion of publications on social networks can also only occur at this time and with age segmentation aimed at excluding minors. For ANJL, the state law creates practical obstacles for broadcasters, media outlets, agencies and operators across the country, producing legal uncertainty about which messages can be transmitted, in which media and under what conditions. In the case of sponsorships of sports clubs and cultural events, the exposure of the brand on uniforms must be limited to simple identification, with any message encouraging the game being prohibited.

RULES IN RIO DE JANEIRO Rio's city hall decree prohibits advertisements in "all locations