Brazil betting ban reaches Supreme Court as industry fights back
Brazil’s gambling industry has followed through on its threat to fight the country’s shock betting ban, asking the Supreme Federal Court to immediately suspend the measure that is shutting down the regulated market.
The National Association of Games and Lotteries, known as ANJL, and the Brazilian Institute for Responsible Gaming, the IBJR, filed submissions with the Supreme Federal Court on September 28.
The challenge is now before Justice Luiz Fux.
The two groups want Fux to suspend the effects of Provisional Measure 1,394/2026 while its legality is considered.
Brazil’s Attorney General’s Office has subsequently asked the court for 72 hours to prepare the government’s response before any decision is made on an injunction.
The development means Brazil’s extraordinary reversal on regulated gambling has moved from political and commercial fallout into a direct constitutional fight.
President Luiz Inácio Lula da Silva signed the provisional measure on September 25, effectively dismantling a regulated online betting and casino market that only formally launched at the beginning of 2025.
New player deposits were immediately stopped and Brazil’s licensed gambling sites are being forced to wind down their businesses, with players having until October 5 to voluntarily withdraw money before betting websites and apps are taken offline.
Existing operator authorisations are subsequently due to be extinguished.
The ANJL and IBJR argue the government has failed to establish the urgency required to justify such a dramatic reversal through a provisional measure.
They also argue that licensed companies relied on rules established by the Brazilian government, paid substantial authorisation fees and invested heavily in building locally regulated operations.
The two associations described the government’s action as “opportunistic and extremely serious” and said it threatened constitutional principles and legal certainty.
One of the industry’s biggest complaints concerns the money operators paid simply to enter the regulated market, with gambling sites paying R$30 million for five-year federal authorisations.
Industry groups say approximately R$2.55 billion was collectively paid for licences that are now being terminated without reimbursement.
The associations have also focused heavily on the potential return of illegal gambling.
Their submission argues that closing licensed sites will not eliminate Brazilian demand for online betting but instead direct players towards operators that aren’t subject to Brazilian player-protection, taxation or anti-money-laundering requirements.
“The objective of regulation is not simply to increase the number of legalised operators, but to ensure that existing demand is concentrated on platforms subject to national rules on supervision, taxation and player protection,” the ANJL and IBJR said in their submission.
Brazil had already been engaged in a major campaign against illegal gambling websites, with the industry’s court filing says authorities had blocked tens of thousands of unauthorised domains under the regulated system.
The legal challenge follows confirmation from major international operators that they are examining their own options.
Flutter Entertainment, which operates Betfair and Betnacional in Brazil, said earlier this week it was “extremely disappointed” by the ban and was considering an appeal.
The company estimates a prolonged shutdown could cost it around $70 million in 2026 revenue and $20 million in adjusted EBITDA.
The immediate question is now whether Fux grants the industry temporary relief. If he does, Brazil’s licensed betting companies could potentially receive a reprieve before the October shutdown is completed.
If he refuses, the industry still has another avenue.
The provisional measure must pass Brazil’s Congress within 120 days or it will expire, meaning the battle over the future of one of the world’s largest gambling markets is now taking place simultaneously in the courts and parliament.
