Brazil’s betting suspension is not final: Congress and the STF can still overturn MP 1.394/2026

Brazil’s federal order suspending fixed-odds betting and online virtual games has put the country’s newly licensed market on hold, with transactions stopped, platforms shut down, and domains blocked by Anatel. For PSPs and operators, the key point is that this is not a closed case: the measure still has to survive Congress and the Supremo Tribunal Federal (STF).

1. The suspension comes through Medida Provisional (MP 1.394/2026), issued by the Brazilian executive branch, and it orders the immediate halt of fixed-odds betting (bets) and online virtual games at both federal and state level. In practice, that means the market has been disconnected only months after Brazil started a formal licensing and taxation framework.
2. Enforcement is already operational. The measure requires the cessation of transactions, the shutdown of platforms, and domain blocking by the National Telecommunications Agency, Anatel. For payment providers, that is the kind of instruction that turns a market from “licensed and live” into “stop processing now.”
3. The first legal track runs through the Congresso Nacional, which has 60 - 120 days to review the MP. It can modify, approve, or reject the text. If political agreement does not materialize and the MP expires or is rejected, the regulated market under the previous legislation would be restored immediately.
4. The second track is the Supremo Tribunal Federal (STF). Sector groups such as the Instituto Brasileiro de Jogo Responsable (IBJR) and business confederations have filed Acciones Directas de Inconstitucionalidad (ADI), asking the court for an immediate precautionary suspension of the MP on constitutional grounds, including legal certainty, acquired rights for companies that already paid for licenses, and free competition.
5. The institutional verdict in the source is explicit: the ban is not definitive. This is a provisional measure, which means the practical outcome for operators and PSPs still depends on whether Congress lets it stand and whether the STF intervenes before that process runs its course.

For high-risk payment teams, the useful takeaway is simple: Brazil is not a clean “exit” story yet. The legal status of the market remains open, and the decision path now sits with two institutions that can still reverse the current shutdown.