Brazil: Player limits put spotlight on consumer rights of gambling

Two recent interventions by municipal courts over restrictions on player accounts underscore a significant legislative blind spot in Brazil’s Bets regime regarding consumer rights an issue that requiring a definitive  settlement.

The polemics of Brazil’s nascent ‘Bets’ online gambling regime continue, as two separate regional judiciaries intervene in cases involving customer accounts restricted by wagering limits.

As reported by SBC Notícias Brazil, this week the São Paulo Court of Justice (TJSP), the judicial authority for the city of São Paulo, ordered Kaizen Gaming’s Betano brand to lift restrictions placed on a customer account.

The TJSP ruled in favour of a complaint made by a customer whose account had been limited to wagers of no more than R$5 (€1), without “any plausible explanation being given by Betano”.

In its ruling, the TJSP judge stated that the operator’s use of betting limits could be deemed arbitrary, as they were imposed “without legal backing or evidence of improper conduct,” and were therefore unlawful.

The court referenced legal interpretations of Article 27 of Law 14.790/2023, the legislative framework for Brazil’s betting regime, known as ‘Bets’. The judge determined that the relationship between the user and the licensed betting platform constituted a typical consumer relationship.

Betano defended its use of account limits as a responsible gambling measure, citing Ordinance No. 1.330/2023, which outlines broad requirements for consumer protection, responsible gaming, and anti-money laundering measures.

However, the defence was rejected by the judge, who found the account restriction lacked any justification for such an extreme measure. There was no evidence of gambling addiction, fraud, manipulation, or violation of the platform’s terms of use.

Betano was also accused of trying to avoid accountability by attributing the issue to its international operations. The judge ruled that the company’s Brazilian subsidiary could not hide behind its corporate structure when it came to matters of consumer redress.

Bet365 sanctioned in Minas Gerais

This case is not an isolated incident. In a separate but similar ruling, the Court of Justice of Minas Gerais held Bet365 accountable for unlawfully blocking a customer’s account after they achieved consistent betting profits.

The court ruled that the contract clause allowing Bet365 to unilaterally close accounts “at its sole discretion” was abusive. The judge found it violated the principles of good faith, contractual balance, and the right to clear information, as stipulated in Brazil’s Consumer Defence Code.

In addition to reinstating the bettor’s access, the court ordered Bet365 to compensate the customer for “moral damages”, recognising both financial and psychological harm caused by what was viewed as a punitive measure in response to the user’s success.

These rulings signal a pivotal moment in the implementation of Brazil’s regulated betting framework. As more users challenge arbitrary restrictions, operators may face mounting legal pressure to guarantee transparency, fairness, and accountability.

Consumer rights under increased scrutiny

Since the launch of the Bets regime on 1 January, consumer rights have come under heightened scrutiny from Brazil’s Senate and government officials.

In April, Brazil’s Ministry of Justice and Ministry of Finance (MEF) ordered all licensed betting operators to register with Consumidor.gov.br, a government-run platform for handling consumer complaints.

The directive is supervised by SENACON (the National Consumer Secretariat), which ensures gambling consumers have a direct, transparent channel to file complaints and track resolutions. Operators are required to respond to complaints within 10 days or face penalties.

Consumidor.gov.br is already used to resolve disputes across sectors such as e-commerce, financial services, automotive sales, healthcare, public utilities, and travel.

SENACON emphasised that while it does not mediate gambling disputes directly, the platform facilitates communication between consumers and businesses in a transparent and traceable manner.

Another Bets blind spot

As part of its 2025 regulatory agenda, the Secretariat of Prizes and Betting (SPA) will collaborate with SENACON to establish new mechanisms that uphold consumer rights. The two agencies aim to increase public awareness of consumer protections, promote responsible gambling practices, and monitor operator compliance with regulatory standards.

Though played out in Brazilian municipal courts, the judgements against Betano and Bet365 may mark another turning point in the ongoing development of the nascent Bets regime and its still-evolving regulatory proceedings. Consumer rights have become a shifting and urgent matter for lawmakers and regulators to act upon.