Until Wednesday last week (11), betting houses such as bet365, Betano, Parimatch and Novibet, among others, allowed betting on who would be the next mayor of Belém, Belo Horizonte, Curitiba, Manaus, Porto Alegre, Rio de Janeiro, Salvador and São Paulo.
On Friday (13), at least three of the seven were no longer offering the service. In the electoral betting modality, companies offer different prizes depending on the candidate selected – these are called odds.
Anyone who uses bet365 to bet on Ricardo Nunes in the electoral race in the capital of São Paulo and gets it right will receive R$1.72 (US$ 0.31) for every real bet, for example. In the case of Pablo Marçal, it is R$2 (US$ 0.36), and with Guilherme Boulos, R$5 (US$ 0.90) for every real bet.
Last December, the National Congress concluded the vote on the bill that regulates the fixed-rate 'Bets' sector, in which bets operate, and also the authorization for online casinos.
The legislation authorizes two types of bets in the country: those that have as their object sports disputes, such as soccer matches, or virtual online gaming events, such as the so-called Fortune Tiger. Electoral bets are not included.
As of 2025, only companies authorized by the Prizes and Betting Secretariat of the Ministry of Finance will be able to operate in the country.
When asked by the press to comment on the exploitation of electoral betting, the Ministry of Finance said that "bets that go beyond these two modalities [sports and virtual casino] are not covered by the legislation, and therefore cannot be understood as legalized or in the process of regulation or adaptation." The department, however, did not specify whether or not the activity is illegal.
When questioned, the Superior Electoral Court (TSE) stated that electoral betting may be subject to judgment by the court and that, for this reason, it cannot pronounce itself. The TSE may pronounce itself in the future in the proceedings, it says.
There is no specific legal rule that regulates or prohibits electoral betting in Brazil, say lawyers who are experts in the subject interviewed by Folha.
A founding member of the Brazilian Academy of Electoral and Political Law, lawyer Anderson Alarcon says there is no provision for this market in the electoral law, so the issue has not been well resolved. "And when there is no law prohibiting something, it is assumed that it is permitted."
As long as electoral bets do not become propaganda, polls or reverse electoral surveys, producing a biased and artificial incentive for voters, there is no legal impediment, argues the lawyer.
The prohibition contained in the Law of Criminal Misdemeanors does not cover electoral bets, only sports, says Luiz Felipe Maia, partner at MYLaw Advogados and specialist in gambling and betting regulation.
He denies that the lack of legal provision characterizes a loophole. "A loophole is what should have been prohibited and was not," he says. "The law only prohibited bets on sporting events and horse racing outside of authorized locations, not other types."
Maia points out that, as of 2025, the offering of electoral bets will be prohibited for companies that obtain authorization from the Treasury to come to Brazil, because the license is for sports-themed events or virtual online gaming events.
Political bets fall into the category of tolerated bets —neither permitted nor prohibited— says Fabiano Jantalia, partner at LegisMind and specialist in gaming law. "The law that regulates online 'Bets' and casinos does not exclude the possibility of other bets," argues the lawyer. "Electoral betting is legal.
National Association of Games and Lotteries (ANJL), an entity that represents companies in the sector, argues that there is no illegality in offering electoral betting until January 1, 2025.
"Considering that electoral results are real events with a non-sports theme, ANJL understands that this type of service will not be covered by the federal authorization that will be granted to betting houses," says a note sent by the association.
Electoral betting in Brazil
What does the law say?
Law 14,790, of 2023, provides for fixed-odds betting in two modalities: sports championships and online casinos. The text expressly prohibits the exploration of bets in youth category tournaments or those played exclusively by minors.
What does the Ministry of Finance say?
"Bets that go beyond the modalities provided for are not provided for by law, and therefore cannot be understood as legalized or in the phase of regulation or adaptation," said the ministry in a note sent to Folha. The Ministry did not state whether or not the practice is illegal.
What do the companies say?
There is no illegality until January 1st, when the process of registering 'Bets' by the Ministry of Finance ends and the authorizations granted by the ministry come into effect, says the National Association of Games and Lotteries (ANJL) in a note. The entity also highlighted that the Law does not explicitly prohibit electoral betting.
What does the Superior Electoral Court say?
The court says that electoral bets can be subject to judgment and that, therefore, it will only make a statement in the records
What do experts say?
As the Law does not contain an express prohibition on electoral bets, the operation of this service is not illegal, according to electoral lawyers and gaming experts interviewed by the report.
Source: Folha
