Brazil Court Upholds Betting Union SINDIBETS Formation

A Brazilian Labor Court has rejected a legal attempt by the Union of Commissioners and Consignees of the State of São Paulo (SINCOESP) to halt the formation of the Union of Sports Betting and Online Gaming Operators (SINDIBETS). The decision is being viewed as an important reference point in the organisation of labour representation within Brazil’s expanding betting industry.

The case was filed in September 2025 before the 20th Labour Court of São Paulo, with SINCOESP arguing that the creation of SINDIBETS breached the principle of union unity by overlapping with its own representational scope.

The court dismissed the arguments and upheld the legitimacy of the newly formed union.

Jurisdiction and Procedural Questions

SINDIBETS raised preliminary objections regarding jurisdiction and procedure, arguing that the dispute should first have been addressed through administrative channels with the Ministry of Labour, as formal union registration was still in progress.

The court rejected this position, stating that access to justice cannot be conditioned on prior administrative steps, citing constitutional labour court powers under Article 114.

Core Dispute on Representation

A central issue was whether SINDIBETS duplicated the role of SINCOESP or represented a distinct economic category.

SINCOESP argued that it already covered companies involved in lotteries, regulated gaming and related activities in São Paulo, claiming the new union violated the principle of unicity, which prevents multiple unions representing the same category in one territory.

SINDIBETS, however, maintained that fixed-odds betting constitutes a separate and specialised sector, requiring its own dedicated representation. The argument referenced Brazil’s regulatory framework, including Law No. 13,756/2018, Law No. 14,790/2023 and subsequent Ministry of Finance regulations defining fixed-odds betting as wagers placed on the outcome of defined events.

Court’s Reasoning

Applying the principle of specificity, the judge found that labour representation must reflect the actual economic activity of employers.

The ruling concluded that creating a more specialised union within the same territorial scope is permissible and even appropriate when sector-specific conditions justify it.

Formation of SINDIBETS

SINDIBETS was established in September 2025 following an assembly involving 16 companies from the betting sector. Its formation was driven by the view that employer representation for betting operators in Brazil was still undeveloped.

The union’s statutes were registered shortly after its creation and an official recognition request was submitted to the National Registry of Trade Unions in November 2025.

The court also noted that SINCOESP had previously attempted to extend its representation to gaming-related activities, but this request had been denied due to a lack of similarity between the sectors.

Outcome and Costs

The lawsuit was dismissed in full, with SINCOESP ordered to pay court costs of R$200 and additional legal fees set at 15% of the denied claims, amounting to R$50.

The judge also rejected claims of malicious litigation, finding no evidence to support such an accusation and denied the request for urgent injunctive relief.

Wider Implications

The ruling reinforces the recognition of fixed-odds betting as a distinct regulated sector within Brazil’s labour and economic framework, highlighting the increasing institutional structure forming around the industry as it continues to expand under national regulation.