A Brazilian Labor Court has dismissed a lawsuit seeking to block the creation of the Union of Sports Betting and Online Gaming Operators (SINDIBETS) in São Paulo. The case was brought by the Union of Commissioners and Consignees of the State of São Paulo (SINCOESP). It argued that the new union violated Brazil’s principle of union unity by overlapping with its existing representation.
Filed in September 2025 at the 20th Labor Court of São Paulo, the complaint claimed that SINDIBETS unlawfully duplicated SINCOESP’s role. However, the court rejected the arguments. It ruled that the formation of SINDIBETS was legitimate. This marks an important decision for the organisation of labor representation within Brazil’s rapidly expanding betting sector.
Court Confirms Jurisdiction and Dismisses Procedural Objections
During proceedings, SINDIBETS raised objections regarding the court’s jurisdiction and argued that the matter should have been handled administratively, since the union had not yet completed formal registration. The defendants suggested that the case should first be brought before the Ministry of Labor.
The court denied this objection, emphasizing that access to justice does not depend on the prior exhaustion of administrative procedures. The ruling confirmed that the Labor Court had authority to hear the dispute under Article 114 of Brazil’s Constitution. This article establishes the court’s competence in labor-related matters.
Dispute Focused on Union Representation Scope
A central issue in the case was whether SINDIBETS represented a distinct economic category or simply duplicated SINCOESP’s coverage. SINCOESP argued that it already represented companies involved in lotteries, authorised gaming, and related commercial activities in São Paulo. Therefore, the creation of a new union in the same territory violated the constitutional principle of union unicity.
SINDIBETS countered that fixed-odds betting is a specialized and regulated economic activity requiring its own employer union. It pointed to Brazil’s legal framework for the sector, including Law No. 13,756/2018, Law No. 14,790/2023, and subsequent Ministry of Finance regulations. These define fixed-odds betting as wagers placed on predicting outcomes of real or virtual events.
Judge Applies Principle of Specificity to Uphold New Union
In reaching the decision, the judge applied the principle of specificity, which prioritizes union representation aligned with the dominant economic activity of employers. The court found that labor law supports the creation of more specialized unions, even within the same territorial base. Such representation better reflects the structure and needs of a distinct sector.
The ruling concluded that SINDIBETS reflects the particular characteristics of fixed-odds betting and online gaming. Therefore, it does not unlawfully conflict with SINCOESP’s scope.
Background of SINDIBETS Formation
SINDIBETS formed in September 2025 during an assembly attended by 16 betting-related companies. Members reportedly created the union after the Women in Gaming Industry Association (AMIG) identified the absence of a dedicated employer union for the betting industry.
Following its establishment, SINDIBETS registered its statutes shortly after becoming a legal entity and submitted a formal request for union recognition to Brazil’s National Registry of Trade Unions in November 2025. The court also noted that SINCOESP had previously attempted to broaden its representation to cover gaming-related businesses. However, this effort had been rejected due to insufficient similarity between business activities.
Court Orders Costs but Rejects Bad-Faith Claims
The court dismissed the lawsuit as unfounded and ordered SINCOESP to pay R$200 in legal costs, representing 2% of the litigation value, along with R$50 in legal representation fees. However, the judge declined to classify the case as malicious litigation, citing a lack of evidence that SINCOESP filed the lawsuit in bad faith.
The court also reaffirmed its earlier decision to deny an urgent injunction that would have suspended the effects of the union’s founding assembly.
Significance for Brazil’s Regulated Betting Industry
Industry observers view the ruling as a key moment for labor and institutional development within Brazil’s regulated betting market. By recognizing fixed-odds betting as a distinct economic sector capable of forming its own union representation, the decision strengthens the legal foundation for industry-specific labor structures.
As Brazil continues to implement stricter regulation and licensing requirements for betting operators, unions such as SINDIBETS could play a growing role in shaping employment standards. They will also help formalize labor relations within the sector.
