Brazil's Court Suspends Lawsuits Over Online Betting Ban

Brazil's Supreme Federal Court (STF) has suspended proceedings on President Lula da Silva's federal measure banning online betting until it rules on whether the measure is constitutional. Justice Luiz Fux accepted a request from Attorney General Paulo Gonet, who wanted mutual court orders that allow some companies to keep offering online betting services to be lifted.

Congress began a 120-day review process after Lula announced Provisional Measure No. 1,394/2026 on September 25. Betting companies were given a short period to close, but some firms received an early exemption. CDA Gaming kept operating Casa de Apostas, BetSul and Jogo Online under lower court rulings. Stake also received permission to operate briefly until the second round of the October 25 presidential election, but that decision was quickly overturned.

The court received numerous petitions from trade organizations, which argue that Lula's measure unfairly suspended a regulated market. Over three days of hearings last week, Fux heard differing views from the government, the business sector and civil society. Industry groups and their commercial allies described the president's intervention as a constitutional violation, saying it breaches the principles of legal certainty, free competition and fair trial. On the other hand, licensed operators under the framework based on the Bets Law signed at the end of 2024 should be able to keep operating until Congress decides whether to approve the measure.

Fux's interim decision stressed that conflicting rulings could create legal uncertainty and that some operators could keep working while others remain banned. The decision aims to ensure the Supreme Court applies the rules consistently. Fux maintains that examining the constitutionality of the ban is an essential prerequisite. The decision clarifies the legal avenues open to the regulated betting sector and critics, while also narrowing them.