Brazil trade bodies ask Supreme Court to suspend betting ban over constitutionality and tax concerns

The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) have asked Supreme Federal Court judge Minister Luiz Fux to immediately suspend Provisional Measure 1.394, which banned the operation of betting sites in Brazil. Their filing argues that the measure is unconstitutional, and for payment and gaming operators the practical issue is simple: a sudden ban can freeze licensed business, unsettle PSP relationships, and create immediate settlement and compliance risk.

1. ANJL and IBJR filed a “Statement on Supervening Fact” with the Supreme Federal Court and are participating as amici curiae (“friends of the court”) in ADIs 7.721, 7.723, and 7.749. They say Provisional Measure 1.394, introduced on Friday, should be suspended immediately.
2. The groups argue that the measure violates constitutional principles because there is no demonstrated urgency, which is required for a Provisional Measure. They say there has been no new fact that would justify immediate government intervention, and they describe the measure as an “opportunistic and extremely serious” act that could cause irreversible damage to the sector.
3. According to the filing, Secretariat of Prizes and Bets (SPA) data shows the market did not experience an explosion in bets or abnormal growth that would support emergency action. Instead, the financial volume fell by 42% between October 2025 and June 2026.
4. ANJL and IBJR also say the government had previously supported betting regulation during the legislative process of Law 14.790/2023, including advising against amendments that would have restricted access for vulnerable groups. On their reading, the new measure is a political reversal without a technical basis.
5. The groups claim the state had already structured, authorised and monitored the market since January 2025. Gambling companies, they say, paid BRL30 million ($5.7 million) for licences and invested in technology, security, customer service and responsible gaming tools. Ending those authorisations without transition or compensation, they argue, would breach legal certainty and legitimate expectation.

The filing also says the provisional measure did not provide the budgetary impact estimate required by Article 113 of the Transitional Constitutional Provisions Act. The sector, according to the document, generated BRL9.95 billion in federal taxes and BRL2.5 billion in grants in 2025.