The National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) have submitted an urgent petition to Brazil’s Supreme Federal Court (STF), requesting the immediate suspension of Provisional Measure No. 1,394/2026. The filing, addressed to Justice Luiz Fux on Tuesday, seeks to pause the nationwide ban on betting operators until a new public hearing on the future of Brazil’s betting market can be held.
Industry Pushback Against Immediate Ban
The associations’ legal move follows a request from the Attorney General’s Office (AGU) for a public hearing to reassess the impact of online betting. While the AGU supports keeping the ban in place during this review, ANJL and IBJR argue that the prohibition should not take effect before stakeholders have the opportunity to present their views. They warn that implementing the ban now would create irreversible consequences, including the revocation of licenses, contract terminations, and the dispersal of bettors.
Alternative Timeline Proposed
If the court does not suspend the ban, ANJL and IBJR have suggested a delayed implementation, proposing that the transition toward the ban only begin at the end of December 2026. This would allow licensed operators to remain active until then, aligning with a timeline previously referenced by a Deputy Attorney General before the Federal Court of Accounts. The associations highlight that the current deadlines are extremely short and could be seen as unconstitutional.
Concerns Over Illegal Market Growth
The petition underscores the risk that a sudden ban could drive bettors to illegal platforms. Data cited in the filing indicate a sharp increase in unauthorized betting domains following the ban’s announcement, with the number of active sites rising by 63% in a matter of days. The associations argue that banning regulated betting does not eliminate gambling activity but merely pushes it underground, reducing protections for vulnerable groups and undermining regulatory safeguards.
Implications for Operators and Affiliates
For operators and affiliates, the outcome of this legal challenge is significant. The petition notes that 83 companies paid substantial sums for five-year licenses, which are now at risk of being voided without compensation. The uncertainty over license validity could deter future investment and complicate business planning. Additionally, the abrupt shutdown of authorized platforms has disrupted communication with bettors and left significant player balances to be refunded under tight deadlines.
Key takeaways
- ANJL and IBJR petitioned Brazil’s Supreme Court to suspend the betting ban pending a public hearing.
- The associations warn that the ban could fuel illegal gambling and strip players of protections.
- An alternative timeline would delay the ban’s implementation until December 2026.
- Operators face uncertainty over license validity and the return of player funds.