The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) have filed a lawsuit in the Supreme Court demanding suspension of the betting ban imposed by President Lula da Silva. Provisional Measure 1.394/2026 shut down the licensed market; operators must disable their sites by 6 October.
The associations argue the measure violates the constitution, lacked prior impact assessment and undermined legal certainty for licensees. Licensed operators paid R$9.95 billion in federal taxes in 2025 and R$2.5 billion for licences worth R$30 million each, valid until 2029. Unlicensed sites controlled 41–51% of the market before the ban. Between 22 and 28 September, 6,401 new unlicensed bookmakers appeared, according to Legibet data.
The case has been assigned to Justice Luís Fux, who voted in August to maintain criminal liability for gambling in a separate matter. The Attorney General's Office requested 72 hours to respond. The court is also reviewing four other lawsuits on betting regulation.
Leonardo Benites, ANJL's deputy communications chief, called the lawsuit "the first action of hope" but acknowledged a ruling may not come before the first round of elections on 4 October. Association members will comply with the measure if the court takes no action by 5 October. Benites disputes the government's claim linking betting to household debt: total consumer debt stands at around R$9 trillion against R$37 billion in industry revenue. Credit cards are the main debt driver — 85.3% of debtors accumulated debt through them, with revolving credit rates reaching 440.5% annually, National Confederation of Commerce data show.
The provisional measure lasts up to 120 days but could extend to March 2027 with parliamentary recesses. If Congress does not approve it, the court case becomes moot.
