Brazilian government prioritises vote on fixed-odds betting ban

Brazil's government has made Measure 1.394/2026, which bars fixed-odds betting, a priority and wants the National Congress to decide its future before the end of 2026, according to a report. The measure was published in September and ended the authorisations granted to companies in the regulated sector. The Supreme Federal Court (STF) has scheduled a public hearing on the measure for 3 November, with 26 institutions and entities due to take part.

José Guimarães, minister of the Secretariat of Institutional Relations, said the measure is one of the three most important matters for the executive in the coming months, alongside the public security PEC and the zero-tariff PEC. Guimarães said the joint committees must be constituted by 20 December for the matters to be voted on. "Si votamos estas tres grandes pautas, ya nos damos por satisfechos", he said at a press conference. The government's calculation is that from 2027 the Congress will have more legislators opposed to the government, which the government side considers could make approval of executive projects harder in the next term.

The STF hearing was called by Justice Luiz Fux, rapporteur of the actions challenging the measure's constitutionality, for 10:00 on 3 November in the Second Chamber's session room. The hearing was requested by the National Association of Games and Lotteries (ANJL) and the General Advocacy of the Union (AGU). Participants include the Ministry of Finance, the National Confederation of Industry (CNI), the Brazilian Football Confederation (CBF), the Brazilian Association of Radio and Television Broadcasters (Abert), the Brazilian Institute of Responsible Gaming (IBJR), the Economic Regulation Laboratory of the State University of Rio de Janeiro and the Brazilian Association of Economic Freedom. Representatives of Serie A clubs Flamengo, Fluminense, Botafogo, Cruzeiro, São Paulo, Corinthians, Ponte Preta, Vitória, Guarani and Portuguesa were also summoned. The hearing does not decide on suspending the measure; it organises the receipt of arguments and information on its impacts.

Sector associations argue that the ban produced an "exponencial e indebido" rise in the illegal market and ask for the effects of the measure to be suspended until Congress examines it or the STF issues a final ruling. They also ask that authorisations already granted, regulatory acts and the official list of authorised operators remain in force. In Congress, the amendments presented include proposals to limit the ban to certain modalities, preserve existing sponsorship agreements and establish transition periods.

Ten clubs and the CBF will use the hearing to press for a longer transition period for sponsorship contracts if the measure is not suspended. According to consultancy Sports Value, betting houses account for 34% of clubs' marketing revenue and are main sponsors at 14 of the 20 Serie A teams. Commercial revenue at clubs grew 95% between 2023 and 2025; without contributions from that segment, growth would have been 25%, estimated Amir Somoggi, founder of the consultancy. Companies in the sector would have invested between R$500m and R$600m more in advertising than companies in other sectors.

São Paulo took the claim onto the pitch on 17 October, wearing the phrase "Prohibir no es proteger" on its shirts against Vasco. Flamengo president Luiz Eduardo Baptista warned of difficulties in meeting squad costs. "No tendremos dinero para pagar el salario de Lucas Paquetá en enero con esta medida", he said in a recent interview. The club also used protest messages in some matches, including the clásico against Fluminense.

The judicial discussion covers the legal security of authorisations granted, the continuity of commercial contracts and the possible shift of activity to unlicensed operators. The government wants to close the debate before the composition of Parliament changes in 2027. The outcome of the 3 November hearing and the pace of legislative processing will determine, in the coming two months, whether the ban is maintained, modified or lapses.