Brazil's betting industry is preparing a coordinated Supreme Court challenge to overturn the gambling ban and prevent website and app shutdowns scheduled for 6 October. President Luiz Inácio Lula da Silva signed Provisional Measure 1394 on 25 September.
Around 180 representatives of operators, trade associations and related businesses agreed to file jointly rather than pursue separate lawsuits. The goal is to secure an injunction suspending the measure and allow continued legal operation. Two legal routes are under consideration: a direct unconstitutionality claim and a collective writ of mandamus. The National Association of Games and Lotteries (ANJL) is already drafting filings, with president Plínio Lemos Jorge putting the likelihood of a coordinated submission at 98%.
Operators intend to argue the measure dismantles the regulatory system the government itself built and violates constitutional principles of legal certainty and economic freedom. Legal teams are examining whether the government proved the "relevance and urgency" required for a provisional measure and will challenge the data used to justify the ban. A separate dispute concerns the revocation of licences issued by states and the federal district — in 2020 the Supreme Court ruled that the federal government holds exclusive legislative authority over lotteries but not a monopoly on their operation.
Financial exposure
Operators paid 30 million reais for each five-year licence; 85 licences brought 2.55 billion reais to the treasury. Each licence allowed management of three brands. The measure excludes full or partial refund of fees and compensation. Finance Minister Dario Durigan called the licences "unstable administrative relationships" valid only while the activity remains permitted. ANJL is preparing claims for licence fee refunds and compensation for investment in staff, technology, compliance and commercial contracts. Attorney General Jorge Messias said the measure underwent thorough legal review and the government is ready to defend it.
