Brazil betting ban challenged as sports clubs lose out
Brazil’s Supreme Federal Court has heard arguments challenging the government’s online gambling ban, with football organisations warning that the restrictions threaten hundreds of millions of reais in sponsorship revenue.
The public hearing, held on November 3, examined Provisional Measure 1.394, which prohibited online sports betting and casino gaming in September.
MORE: Gambling in Brazil
The proceedings were opened by Supreme Court Minister Luiz Fux and involved representatives from 34 organisations.
The National Association of Games and Lotteries (ANJL) is challenging the measure through Direct Action of Unconstitutionality 8027, seeking to suspend its effects.
Government representatives defended the restrictions, arguing that gambling had contributed to financial difficulties, health concerns and wider social harm.
However, industry representatives maintained that prohibiting licensed gambling would undermine Brazil’s recently established regulatory framework.
Football organisations also warned of significant financial consequences.
The Brazilian Football Confederation (CBF) estimated that the ban could remove BRL420 million in competition naming-rights revenue during 2027.
The figure includes agreements involving Betano’s sponsorship of Brazil’s top football division and Superbet’s sponsorship of the second tier.
According to submissions presented at the hearing, 27 of the 40 clubs competing in Brazil’s top two divisions had betting companies as their principal sponsors.
Brazil introduced its regulated national online betting framework in January 2025 before the government imposed the provisional prohibition in September 2026.
The Supreme Court proceedings could determine whether the restrictions remain in place while the constitutional challenge progresses.
