Brazilian Betting Associations File Supreme Court Challenge Against Lula’s Online Gambling Ban

Two major Brazilian betting industry associations, the Brazilian Institute for Responsible Gaming (IBJR) and the National Association of Games and Lotteries (ANJL), have asked Brazil’s Supreme Federal Court (STF) to immediately suspend President Luiz Inácio Lula da Silva’s provisional measure banning online betting. The groups argue the measure is unconstitutional and undermines a regulated market the federal government established less than two years ago.

Two major Brazilian industry associations have asked the country’s Supreme Federal Court (STF) to block President Lula da Silva’s provisional measure banning sports betting and online gaming. The Brazilian Institute for Responsible Gaming (IBJR) is acting in coordination with the National Association of Games and Lotteries (ANJL).

The associations argue the measure is unconstitutional because it prohibits an activity that the federal government itself regulated over the past two years.

IBJR Calls the Decision ‘Hasty’

“The decision is hasty and creates serious legal uncertainty,” the IBJR said in a statement after challenging the measure. “Companies received government authorization, met regulatory requirements and invested in operating under the rules set by Brazil. Changing those rules abruptly undermines confidence in the country, regardless of anyone’s views on betting.”

Lula signed the provisional measure on Sept. 25, nine days before Brazil’s Oct. 4 election. The measure bans fixed-odds betting and online gaming and establishes a timetable for operators to cease activities.

Market Impact and Operator Fallout

The ban, if not reversed, threatens what has become one of the world’s largest regulated betting markets, which expanded after Lula’s government implemented a licensing framework less than two years ago.

According to industry reports, 188 licensed betting sites operate in Brazil’s regulated fixed-odds betting market, which is valued at approximately $7 billion.

Brazil’s football industry also faces significant financial consequences. Reuters reported that betting sponsorships generated around R$1 billion ($192 million) for Série A clubs in 2025, accounting for approximately 10% of their recurring revenue.

The IBJR acknowledged that concerns about the impact of betting are legitimate but argued that the ban could strengthen the illegal market and weaken consumer protections.

“In the Institute’s view, the provisional measure disregards the existing legal framework and weakens the controls and protections established by the state itself,” the IBJR statement said.

Constitutional Arguments

José Frederico Manssur, a partner at law firm Natal & Manssur Advogados who specializes in sports betting and online gaming regulation, said there are grounds to challenge the ban’s constitutionality before the Supreme Court.

Manssur pointed to previous Supreme Court decisions recognizing that the federal government does not have exclusive authority over lotteries, and that states may also operate lottery services. He argued that this raises constitutional questions over the federal government’s ability to impose a nationwide prohibition through a provisional measure.

Manssur also argued that a provisional measure is not the appropriate legal instrument to revoke the existing regulatory framework. In his view, Congress would need to approve new legislation through the regular legislative process.

Congress originally approved the legislation establishing Brazil’s regulated fixed-odds betting market before Lula’s government implemented the current licensing framework.

Licensing Fees and Industry Response

Manssur also raised questions over the licensing fees paid by operators that received authorization to enter Brazil’s regulated market.

The Lula administration has not announced plans to return those licensing fees. Manssur described retaining the fees while preventing operators from continuing their licensed activities as “confiscation.”

The Brazilian Association of International Gaming Operators and Providers (Abrajogo) has also criticized the ban, arguing that it damages Brazil’s business environment and breaks with the regulatory framework established by the state.

Government Asked to Respond

Brazil’s Attorney General’s Office (AGU) has requested 72 hours to provide information to the Supreme Court before Justice Luiz Fux considers the request to immediately suspend the measure.

The request gives the government an opportunity to present its position before the court decides whether to grant immediate relief against the betting ban.

Congressional Path Forward

The legal challenge is not the only route to overturning the measure.

Congress retains the power to approve, amend or reject the provisional measure. Under Brazil’s constitutional rules, a provisional measure generally loses its effectiveness if Congress does not convert it into law within 60 days, with the period extendable once for another 60 days.

The Supreme Court proceedings and congressional review will therefore determine whether the ban remains in place or Brazil’s recently established regulated betting market can resume operations.