Brazil’s Supreme Federal Court (STF) has suspended further proceedings in the legal challenges against the federal ban on online betting, marking a significant development in a dispute that has placed the future of the country’s regulated gambling market in doubt. The suspension follows a public hearing held on 3 November 2026, which examined the constitutionality of Provisional Measure (MP) 1.394/2026 – the instrument through which the government prohibited fixed-odds betting nationwide.
Background to the Ban
MP 1.394/2026 was issued by the administration of President Luiz Inácio Lula da Silva in late September 2026, days ahead of the presidential election. The measure prohibits fixed-odds betting operations in Brazil and provides for the termination of federal, state and district licences previously granted to operators.
The decision reversed course on a framework that had been legalised by law in 2018 and fully implemented in recent years, which had attracted significant international investment into the Brazilian market. Operators, sports clubs and industry associations responded by filing Direct Actions of Unconstitutionality (ADIs 8024, 8027, 8028 and others) before the STF, arguing that the measure lacked the urgency required to justify its use and that it disrupted a lawful, regulated sector.
The Public Hearing
Justice Luiz Fux, serving as rapporteur on the actions, convened the public hearing and oversaw proceedings in which the government defended the prohibition while the sports sector warned of substantial financial losses. The hearing featured contributions from 28 entities and exposed sharp divisions between stakeholders on the economic and social impact of the ban.
During the hearing, Justice Fux stated his view that betting should be banned, while noting that his position would depend on the assessment of the full court. He also raised the possibility of a transition arrangement for affected operators. Following his initial vote in the case, proceedings were subsequently suspended, with the remaining justices’ votes deferred.
In a parallel development, Attorney General Paulo Gonet requested on 6 November that the STF suspend all pending actions concerning betting in lower courts and other judicial instances, seeking to centralise the legal question before the Supreme Court. This move reflects the fragmented nature of litigation on the issue across Brazil’s judiciary, with operators and license holders pursuing challenges in multiple jurisdictions.
