Brazil’s new ban on online betting is facing legal challenges from three industry associations, with petitions before the Supreme Federal Court seeking to suspend the measure while Congress considers its future.
President Luiz Inácio Lula da Silva signed Provisional Measure No. 1.394 on 25 September 2026. The measure immediately prohibited the operation, offering, intermediation and advertising of fixed-odds sports betting and online games in Brazil, including offshore operators serving Brazilian players.
The ban stopped new deposits on the day it was published. Players can withdraw remaining balances until 23:59 on 5 October, while betting websites and applications must go offline from 6 October. Licence revocation is scheduled for 25 October, 30 days after publication.
Congress has up to 120 days to consider the provisional measure, excluding recess. It must approve the measure for it to become permanent law.
Betting Groups Take the Dispute to Court
The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) filed a joint petition with the Supreme Federal Court on 28 September. The application was submitted to Justice Luiz Fux in proceedings that already address challenges to Brazil’s betting framework.
The organisations want the measure suspended until Congress acts or the Supreme Federal Court reaches a decision on the constitutional challenges. They have asked that existing licences remain valid during the review.
The groups have also proposed alternatives if the court does not grant a complete suspension. As NEXT.io reports, one option would protect existing licensees. Another would provide operators with at least six months to wind down their businesses while submitting a discontinuation plan to the Secretariat of Prizes and Betting.
ANJL and IBJR argue that the government has not demonstratedthe urgency required by Brazil’s constitution for a provisional measure. They point to the regulatory framework established by the government itself and say issues involving vulnerable consumers, advertising and online casino games had already received legislative consideration.
Their filing states that official data from the Secretariat of Prizes and Betting showed no exceptional expansion in betting activity. According to the statement, the market’s financial volume declined by 42% between October 2025 and June 2026.
The organisations also contend that operators made substantial commitments under the existing system. They say companies paid BRL30 million for licences and invested in technology, security, customer service and responsible-gaming systems.
“The Brazilian state invited private agents to enter the market […] and now, a short time later, it intends to empty the economic content of the authorisations that it itself granted,” they pointed out.
The filing also questions the fiscal consequences of the measure. It says the provisional measure did not include a budgetary impact assessment required under Article 113 of the Transitional Constitutional Provisions Act.
According to the organisations, the sector generated BRL9.95 billion in federal taxes, BRL2.5 billion in grants and BRL95.5 million in inspection fees during 2025.
Separate Challenge Filed by Anseja
ANJL has said it will bring a separate action specifically challenging Provisional Measure 1.394. That proceeding will seek a declaration that the measure is unconstitutional and recognition of the constitutionality of the existing betting laws.
Anseja, the National Association for Legal Certainty in Gaming and Betting, has already filed its own direct action of unconstitutionality. It is seeking an urgent injunction to prevent the measure from taking effect.
Anseja raises concerns over the measure’s alleged lack of urgency and other formal issues. The organisation argues that certain provisions, including those involving financial assets and advertising, cannot be established through a provisional measure in the manner adopted.
It also says the immediate closure of platforms and cancellation of ongoing bets would create irreversible consequences. Anseja has asked the court to preserve existing authorisations until a final judgment.
Both sets of legal arguments also address the possibility that the ban could push customers toward unregulated betting platforms. ANJL and IBJR cite studies estimating that illegal operators already account for between 41% and 51% of the Brazilian market.
The associations argue that such platforms generally provide fewer consumer safeguards, including user identification, deposit limits, self-exclusion measures and anti-money-laundering controls.
The ANJL and IBJR statement described the government’s action as an “opportunistic and extremely serious” act that they say violates constitutional principles and could cause irreversible damage to the sector.
Search Demand Drops After Initial Surge
The regulatory action also produced a sharp movement in online interest in betting brands. The Blask Index for Brazil rose 41.45% on 26 September, one day after the measure was signed and published.
The index subsequently declined 20.1% week on week. Blask measures demand for iGaming brands in individual markets using normalised search data, and its analysis linked the later decline to expectations of an actual market shutdown.
The legal proceedings began as the operational deadlines approached. ANJL and IBJR submitted their Supreme Court petition on 28 September, while ANJL announced plans for an additional constitutional action.
Blask said in its analysis:
‘The Sept 28 Supreme Federal Court filing, brought by betting-sector associations arguing the ban causes irreversible harm, adds a second, faster-moving avenue for reversal. Brazil regulated fixed-odds betting only two years ago; a full-scale prohibition attempt this soon, contested in court within days, is a marked reversal for one of Latin America’s largest regulated markets.’
Brazil’s regulated betting market opened in January 2025, less than two years before the current prohibition.
The government has also submitted a separate bill to Congress that would make five betting-related activities criminal offences. The proposed legislation includes prison sentences of two to six years.