Brazil’s Supreme Court is set to hear the Bets Law challenge in September 2026, with betting restrictions at the center

The STF (Supreme Federal Court) is expected to review the challenge to the validity of Brazil’s Lei das Bets in the second half of 2026, with the key issues being whether beneficiaries of social programs should be barred from betting and whether wagers on a single athlete should be prohibited. For PSPs and acquirers serving Brazil, this is not just a legal side quest: the court is looking at the plumbing that determines who can bet, on what, and with whose money.

1. According to Folha de S.Paulo, Justice Luiz Fux, the rapporteur in the case, told people close to him that he wants to bring the matter to the plenary in September 2026. STF President Justice Edson Fachin, who sets the court’s calendar, has signaled receptiveness to putting the case on the agenda.
2. The main action was filed by the PGR (Procuradoria-Geral da República), which is asking the court to declare the law unconstitutional. Attorney General Paulo Gonet said the virtual betting market has a predatory character capable of generating a “grave situation of violation of fundamental rights.”
3. Fux has already granted an injunction in the cases under review, including one filed by CNC (Confederação Nacional do Comércio de Bens, Serviços e Turismo) and another by the Solidariedade party. That injunction bars betting ads aimed at minors and prohibits the use of Bolsa Família and BPC (Benefício de Prestação Continuada) funds on betting platforms.
4. The federal government told the STF that blocking beneficiaries from betting is operationally unworkable because once the benefit is paid out, the state loses control over how it is used. The Ministry of Finance then issued a decree banning social program beneficiaries from registering on the platforms. The point has also been challenged by Able (Associação Brasileira de Liberdade Econômica), which argues that the measure amounts to segregation and that beneficiaries should still be allowed to bet using other sources of income.
5. Another issue on the table is whether bets on a single athlete should be banned, to prevent players from intentionally causing penalties or yellow cards for the benefit of specific bettors. Justice Flávio Dino supports that position and, when endorsing Fux’s injunction, said there cannot be “bets in which the event...”

The regulatory backdrop matters. Sports betting was first legalized under the Michel Temer administration through a provisional measure that reworked the National Public Security Fund and became law in December 2018. The law gave the sector four years to be regulated; that deadline was missed under Jair Bolsonaro, and the market expanded without control, with companies operating in tax havens and without supervision. In 2023, Lula’s government issued a new provisional measure to regulate the sector, and Congress added provisions authorizing not only sports betting but also online casinos.