Brazil’s Attorney General Jorge Messias has asked the country’s Supreme Court to reject legal challenges from operators after the country’s sudden betting ban, arguing that gambling companies are not entitled to any form of compensation. With the controversial measure now headed to Congress, the future of Brazil’s regulated gambling market is increasingly uncertain.
The Government Refuses to Back Down
Messias sent a 60-page petition to Justice Luiz Fux on October 5, hours before Brazil’s licensed betting websites were scheduled to shut down. The petition asked Justice Luiz Fux to dismiss the requests from the National Association of Games and Lotteries (ANJL), the Brazilian Institute for Responsible Gaming (IBJR), and other parties aiming to suspend Provisional Measure No. 1,394/2026.
The argument mainly centers on the licenses awarded to betting companies. According to the Attorney General of the Union (AGU), the government’s authority to create a gambling product also includes the power to abolish it. The authority also argues that operators entering the Brazilian market knew that their authorizations could be withdrawn and were not entitled to a permanent right to continue operating.
The government also denies responsibility for refunding the 30 million reais ($6 million) licensing fee for each authorization. It adds that the payment was not an advance that can be returned if the regulatory framework changes. A 2024 ordinance also established that terminating an authorization does not constitute a right to compensation. In practical terms, the AGU insists that companies accepted the regulatory risk when they paid for their licenses.
Operators Warn of Wide-Ranging Consequences
ANJL and IBJR were only a faction of the groups aiming to stop the provisional measure. Broadcasters’ association ABERT, football union SINAFUT and individual clubs have also filed petitions, with some requesting longer transition periods. Operators and their suppliers now face issues regarding license payments, investments, employment contracts and other commitments made under the belief that Brazil’s regulated betting market would continue.
An IBJR economic study estimated that Brazil’s regulated market currently has 85 licenses. At 30 million reais per license, the fees alone amount to 2.55 billion reais ($509 million). Industry representatives have warned that abruptly ending these licenses could lead to lengthy litigation. Even if the market were eventually restored, companies could still sue for missed profits.
This ban has also put thousands of jobs at risk. A 2025 ANJL and IBJR study showed that the regulated gambling sector employed more than 15,000 individuals. For now, Fux has not yet ruled on the injunction requests to halt the gambling ban. If he sides with operators, the industry will receive temporary relief while the broader legal battle proceeds. Congress also has 120 days to vote on the provisional measure. However, legislative recess could push the decision to 2027.