The ban on online casinos and sports betting in Brazil has shaken the global gambling market. Licensed providers are now going to court, while black market providers are already taking on their first customers.
The exact extent isn’t known yet. But if the gambling ban by Luiz Inácio Lula da Silva stays in place, providers stand to lose billions. So it’s no surprise they didn’t take long to launch legal action against the ban.
The case is now before the Supreme Court. The providers are represented by two interest groups. They argue that the ban is not lawful. On the one hand, there is no state of emergency. On the other hand, licence contracts are being broken.
On top of that, the Brazilian government hasn’t carried out a study that would justify such a U‑turn. And players are being harmed, because black market providers don’t concern themselves with bans.
The illegal providers didn’t hesitate for long and have ramped up their efforts since the ban. How the Supreme Court will decide remains to be seen. Poker rooms are not affected by the ban, as the card game is considered a game of skill.