the Labor Court in São Paulo has rejected a legal challenge brought by the Union of Commissioners and Consignees of the State of São Paulo (SINCOESP) against the formation of a new union, the Union of Sports Betting and Online Gaming Operators (SINDIBETS). The ruling, made by the 20th Labor Court in May 2026, underscores the evolving landscape of trade union representation in Brazil’s burgeoning gambling sector. SINCOESP initiated the lawsuit in September 2025, arguing that SINDIBETS violated the principle of union unity by overlapping with its existing representation. However, the court found the new union to be legitimate, which marks a pivotal moment in the regulatory framework surrounding trade unions within the country’s gambling industry.
The decision has broader implications as it navigates the complexities of union representation in a sector experiencing rapid growth and regulatory change. The court addressed jurisdictional and procedural objections raised in the case, notably by SINDIBETS, which argued that the matter should have been brought before the Ministry of Labor due to the union’s yet-to-be-registered status. This argument was dismissed, with the court affirming that judicial proceedings in this context are not contingent on administrative processes, emphasizing the principles of access to justice and jurisdictional independence under Article 114 of Brazil’s Constitution.
Central to the case was the debate over the distinct economic category that SINDIBETS purported to represent. SINCOESP maintained that it already encompassed businesses involved in lotteries and authorized gaming activities in São Paulo, contending that SINDIBETS infringed upon the principle of unicity, which restricts the formation of multiple unions within a single category and territory. Conversely, SINDIBETS argued that fixed-odds betting constitutes a distinct economic activity, warranting specialized union representation. The introduction of Law No. 13,756/2018 and Law No. 14,790/2023, along with ministerial regulations from the Ministry of Finance, have defined fixed-odds betting as a separate entity within the broader gambling industry, supporting SINDIBETS’ stance.
The court’s application of the principle of specificity was critical in this ruling. It concluded that labor laws allow, and indeed encourage, the formation of unions that align closely with specific economic activities within the same region. The establishment of a specialized union, such as SINDIBETS, is viewed as enhancing attention to the sector’s unique needs and challenges, facilitating more effective representation.
SINDIBETS was officially formed in September 2025 during a gathering that included representatives from 16 betting companies. The initiative emerged from the Women in Gaming Industry Association’s (AMIG) recognition of the absence of employer unions within the betting sector. Following its legal establishment, SINDIBETS swiftly submitted its registration request to the National Registry of Trade Unions in November 2025. The court also noted that SINCOESP’s previous attempt to broaden its remit to include gaming-related businesses had been rejected due to the lack of a “similarity or connection” between activities.
Financially, the court ordered SINCOESP to cover legal costs totaling R$200, equivalent to 2% of the litigation expenses, and an additional R$50, which constituted a 15% fee of the denied claims. The court also dismissed SINCOESP’s request to classify the lawsuit as malicious, citing insufficient evidence of such intent. Moreover, the court declined to grant an urgent injunctive relief that sought to halt the effects of SINDIBETS’ founding assembly.
This ruling reflects the recognition by Brazilian authorities of fixed-odds betting as a regulated segment with distinct labor relations and institutional needs. As the betting industry continues to expand under a stringent regulatory framework, the role of trade unions like SINDIBETS becomes increasingly significant in shaping employment standards within the sector.
Looking ahead, the development of union representation in Brazil’s gambling industry will be crucial as the market continues to evolve. The ruling sets a precedent for future cases involving union formation and representation in emerging economic sectors. The industry’s stakeholders, including operators and regulators, will need to navigate these legal frameworks while ensuring compliance with national labor laws. As the regulatory landscape solidifies, further legal evaluations and potential adjustments to union guidelines may follow, shaping the operational dynamics within Brazil’s growing betting industry.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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