Brazilian Labor Court Validates SINDIBETS Union Creation: A Landmark Ruling for Brazil’s Betting Industry

A landmark decision has been handed down by a Brazilian Labor Court, which has rejected a lawsuit filed by the Union of Commissioners and Consignees of the State of São Paulo (SINCOESP) to block the formation of the Union of Sports Betting and Online Gaming Operators (SINDIBETS). The ruling confirms the legitimacy of SINDIBETS, marking a significant milestone for Brazil’s rapidly expanding betting sector.

The lawsuit, filed in September 2025, argued that SINDIBETS violated the principle of union unity by overlapping with SINCOESP. However, the court dismissed these claims, affirming that fixed-odds betting constitutes a distinct economic activity that warrants specialized representation.

One of the key debates centered on whether SINDIBETS represented a unique sector or merely duplicated existing unions. SINCOESP contended that the new union infringed on the principle of unicity, which prohibits multiple unions within the same category in a given territory. However, SINDIBETS argued that fixed-odds betting—defined as ‘bets placed on predicting the results of a determined event, either real or virtual’—required a dedicated union, citing recent regulatory frameworks such as Law No. 13,756/2018 and Law No. 14,790/2023.

The court applied the principle of specificity, ruling that unions must align with prevailing economic activities. This decision not only validates SINDIBETS but also sets a precedent for the formation of sector-specific unions in Brazil’s gaming industry.

SINDIBETS was established in September 2025 during an assembly attended by 16 betting companies, following discussions among members of the Women in Gaming Industry Association (AMIG). The union’s statutes were registered shortly after its formation, and it submitted a request for official recognition in November 2025. The court also noted that SINCOESP had previously attempted—and failed—to expand its scope to include gaming-related businesses due to a ‘lack of similarity or connection between the activities.’

In its ruling, the court dismissed SINCOESP‘s lawsuit as unfounded and ordered the plaintiff to pay R$200 in legal costs and R$50 in fees for legal representation. The judge also refused to classify the lawsuit as a malicious proceeding, citing insufficient evidence.

This decision underscores the Brazilian government’s recognition of fixed-odds betting as a regulated economic sector with distinct labor relations. As the industry continues to grow under strict regulatory oversight, the establishment of SINDIBETS could play a pivotal role in shaping employment terms and industry standards.