Brazilian betting authorisations expire as Supreme Court weighs emergency measure

Authorisations held by 85 betting companies, covering 188 brands, expired on 25 October after the 30-day period set by provisional measure 1.394/2026 ended, according to the report. The measure, published on 25 September, prohibited fixed-odds betting and its advertising. The authorisations had been granted by the Secretariat of Prizes and Betting of the Ministry of Finance (SPA/MF). Fees paid by the companies will not be refunded.

Operators and the National Association of Games and Lotteries (ANJL) filed 19 writs of mandamus in the federal courts after the measure was issued, seeking to suspend its effects and keep the licences valid. Of these, 14 were filed at the Federal Regional Court of the 3rd Region (TRF3), covering São Paulo and Mato Grosso do Sul, and five at the Federal Regional Court of the 1st Region (TRF1), based in Brasília and covering the Federal District and 12 states in the North, Northeast and Central-West regions. The ANJL action is among those at TRF1. No judge has granted an injunction, the report said.

The only ruling in the sector's favour was short-lived. The 9th Federal Civil Court of São Paulo granted Stake a partial injunction allowing it to operate until 25 October, and the president of TRF3 suspended that decision at the request of the federal government.

With no ruling in the lower courts, the sector's position depends on the Supreme Federal Court (STF). Justice Luiz Fux is the rapporteur of the direct actions of unconstitutionality (ADIs) against the measure, assigned to him by prevention. These include ADI 8024, filed by the National Association for Legal Certainty in Games and Betting (Anseja), ADI 8027, filed by ANJL, and ADI 8028, filed by the National Association of Mayors and Deputy Mayors (ANPV). Fux also reports the actions against Law 14.790/2023: ADI 7721, filed by CNC, ADI 7723, filed by Solidariedade, and ADI 7749, filed by the PGR. Abert and football clubs also requested suspension of the measure.

Fux gave the Attorney General's Office (AGU) 72 hours to respond but decided to wait until the election ended before ruling on the request. Within the STF, the assessment is that Fux considers any decision taken before the second round would be seen as an attempt to interfere in the electoral process, and he will therefore only rule after 25 October. From Monday 26 October, the election ceases to be a reason to postpone the decision, the report said.

The report describes three possible outcomes. Fux could deny the injunction and keep the measure in force until Congress examines it; he could suspend the measure in full, allowing the regulated market to resume; or he could modulate the decision, keeping sports betting and prohibiting online games. The report states that the third option addresses only half the problem, since much of the regulated market's revenue comes from online games, and that players would migrate to the clandestine market, which had more than 40% participation after 22 months of regulation.

The expiry of the licences may not be definitive if Fux decides the ruling should have retroactive effect, known in judicial terminology as ex tunc effect. Law 9.868/1999 provides for this possibility: as a rule an injunction in an ADI applies only from that point forward, the ex nunc effect, but article 11, paragraph 1, allows the court to give the decision retroactive effect. If Fux suspends the measure with ex tunc effect, the authorisations would be considered valid without interruption until Congress examines the provisional measure. As an individual decision, it would still need confirmation by the full STF.

The report gives the following deadlines for the measure in Congress: on 9 November it begins to block the agenda of the chamber where it is being considered, its 46th day; 23 November marks the end of the initial 60-day period, with the extension beginning on 24 November; counting is suspended during the recess from 23 December to 1 February; and 4 March 2027 is the last day of validity, after which the measure lapses if not voted. Until Fux rules or Congress votes, the authorised companies remain without a licence, the report said.