Legal certainty is a fundamental value for any economic sector—especially in an emerging industry like online betting and gaming. While Brazil has made progress on regulation, it hasn’t been without turbulence. The threat of abrupt changes in taxation and rules can undermine the confidence of operators, investors, and commercial partners.
Judicial challenges are always possible when measures cause imbalance or violate constitutional principles. But the real issue lies beyond litigation—it's about the erosion of trust in the state itself. This lack of stability can delay investments and, worse, open space for illegal operations to flourish.
Foreign companies, for example, could only pursue international claims if investment protection treaties are in place. But even the mere perception of instability is enough to deter the capital Brazil needs to grow this sector sustainably.
It’s urgent to establish mechanisms that offer greater predictability and balance. Clear legislation that limits overregulation and includes transition clauses is essential. Open and transparent dialogue between the government, Congress, and the private sector must be ongoing.
Another critical issue is the direct impact of fiscal changes on contracts with suppliers, sports clubs, and media outlets. Without well-structured clauses—such as those that allow for adjustments due to legal changes or excessive burden—tax increases can disrupt entire business chains. Ultimately, someone is left to bear the losses alone, which is legally problematic.
Contracts involving advertising and sponsorship may also require review or termination if new rules render them unfeasible. Still, the preferred solution should always be negotiated outcomes built on balance and good faith.
Brazil needs a regulatory environment that is strong, transparent, and predictable. Legal uncertainty cannot be allowed to jeopardize the future of a sector with so much potential to generate jobs, revenue, and innovation. Now is the time for responsibility and long-term vision.
Milton Jordão
Lawyer specialized in Sports Law and Betting Regulation
Vice President, Sports Betting Law Commission – OAB National
