Brazilian gaming groups ask Supreme Court to suspend betting ban
The groups argue a public hearing should occur before the ban takes effect, warning of migration to illegal markets.
The National Association of Games and Lotteries and the Brazilian Institute for Responsible Gaming filed an urgent petition with Brazil’s Supreme Federal Court on Tuesday, asking Justice Luiz Fux to suspend the provisional measure banning betting operators. The industry groups want the ban paused until a new public hearing on the betting market can be held. Their filing came one day after the Attorney General’s Office asked the court to hold such a hearing but also to keep the ban in force. The associations argued that if the federal government itself considers a new review necessary, the hearing should happen before the ban takes effect.
"If the federal government itself considers that the matter requires additional proceedings, the logical consequence is to preserve the subject of those proceedings while they take place," ANJL and IBJR said in their petition. They warned that holding a hearing after the regulated market was eliminated would amount to discussing a "fait accompli." The groups' main request is for Fux to issue an individual decision suspending the effects of the provisional measure, which would then go to the full court. If the suspension is not granted, the associations proposed an alternative: that the transition toward the ban only begin on December 31, 2026, allowing authorized operators to remain operational until that date. They noted this December date was not their proposal but appeared in a submission by Deputy Attorney General Lucas Rocha Furtado before the Federal Court of Accounts. Although opposed to betting, Furtado described the provisional measure's timeline as "exiguous and draconian" and pointed to potential "unconstitutionality and illegality."
The petition was filed on the same day the blocking of authorized betting platforms took effect. From the early hours of Tuesday, website traffic was redirected to a government site. ANJL and IBJR said the platforms recorded around 100 million visits per day and also challenged the blocking of operators’ social media accounts, arguing it eliminated communication channels with bettors. The shutdown came while operators still had funds to return. According to government figures cited, 1.453 billion reais remained to be withdrawn, spread across 28.65 million taxpayer ID numbers.
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The associations warned that bettors migrating to illegal platforms represents a major risk. They cited the federal government's own acknowledgment that this risk "requires consideration" and that it had submitted 10,435 illegal websites for blocking within one week. Data from the Bet Legal observatory found the number of active unauthorized domains increased from 1,195 to 1,949 between the eve of the ban announcement and the morning of October 6, a 63 per cent increase. Another survey identified 18,195 active illegal domains.
"In effect, the provisional measure does not ban gambling: it only bans gambling that the state regulates," the filing stated. The groups argued migration could leave protected groups without safeguards, including over 1.2 million self-excluded individuals and people under 18. Another argument concerned the 83 companies that paid 2.55 billion reais for 85 five-year licenses, which the provisional measure terminates without a refund mechanism. "What is decided now will tell every investor whether a license granted by the state for five years is worth five years or ten days," the associations said.
The Attorney General’s Office has asked the Supreme Federal Court to reject the preliminary injunctions and maintain the prohibition. The AGU argued the betting legislation has proven "extensively flawed," with difficulties in protecting children and preventing money laundering. It disputed claims that the ban would drive bettors to clandestine sites, noting 10,435 illegal websites were blocked in the first week. The agency did not address the thousands of other websites created after the measure. It also stated the operation was subject to review at any time. Under the provisional measure, operators must submit individualized bettor lists on October 7 and 8, while the return of remaining balances must occur between October 9 and 14. The licenses granted to operators will expire on October 25. The decision on the request to suspend the provisional measure now rests with Justice Luiz Fux.