Brazil Supreme Court Suspends Challenges to Betting Ban

Brazil’s Supreme Federal Court (STF) has ordered the suspension of all ongoing lower-court lawsuits challenging Provisional Measure No. 1,394/2026, which prohibits fixed-odds betting platforms in the country.

Justice Luiz Fux, who is overseeing the constitutional challenges to the measure, granted a request from Prosecutor General Paulo Gonet to halt proceedings until the Supreme Court reaches a final decision.

Gonet argued that conflicting rulings from lower courts were creating legal uncertainty and inconsistent enforcement of the betting restrictions.

The order affects all cases examining the constitutionality of the provisional measure and will remain in place until the STF rules on four Direct Actions of Unconstitutionality (ADIs), numbered 8024, 8027, 8028 and 8035.

The decision prevents lower courts from independently ruling on the measure’s constitutionality while the Supreme Court considers the broader legal challenge.

Prosecutor General Cites Conflicting Rulings Involving Stake and CDA Gaming

On November 6, Brazil’s Office of the Prosecutor General of the Republic (PGR) submitted a petition requesting nationwide suspension of lawsuits concerning Provisional Measure No. 1,394.

The petition, signed by Prosecutor General Paulo Gonet, argued that decisions granting temporary relief to gambling operators were undermining consistent application of the law.

Gonet highlighted cases involving Stake and CDA Gaming, the latter of which operates Casa de Apostas, Betsul and Jogo Online.

Both companies had secured preliminary injunctions through proceedings involving the Federal Court of São Paulo and the Federal Regional Court of the 3rd Region (TRF-3).

However, the injunctions were overturned within one or two days by the chief judge of the TRF-3 following requests from the Office of the Attorney General of the Union.

The PGR argued that these conflicting decisions demonstrated the need for a single judicial approach while the Supreme Court examines the legislation.

Its filing also identified 13 additional lawsuits challenging the effects of the provisional measure.

The Prosecutor General consequently asked the STF to suspend all proceedings nationwide that concern the constitutionality of PM 1,394.

Justice Luiz Fux Grants Nationwide Suspension of Betting Lawsuits

Fux accepted the Prosecutor General’s request, ordering lower courts to stop considering constitutional challenges to the provisional measure until the STF delivers its final judgment.

In his decision, the justice directed the “suspension of ALL ongoing judicial proceedings in ordinary courts that address the constitutionality of PM 1,394/2026 until the final adjudication of the constitutional controversy by the Supreme Federal Court”.

The ruling was based on two federal statutes and the STF’s internal procedural rules.

One of the statutes allows the Supreme Court, through an absolute majority of its members, to issue an injunction requiring lower courts to suspend proceedings involving legislation under constitutional review.

Another provision permits the reporting justice to grant preliminary relief in cases involving extreme urgency, the risk of serious harm or a court recess.

However, such decisions are subject to subsequent confirmation by the full court.

Fux’s order therefore establishes an immediate nationwide suspension, although the single-justice decision must be submitted to the STF’s plenary for ratification.

Fux Describes Fixed-Odds Betting as a High-Risk Activity

Beyond the procedural implications, Fux’s explanation for granting the suspension has raised concerns within Brazil’s gambling industry.

The justice argued that conflicting court decisions could create uncertainty while potentially allowing an activity he considers harmful to continue operating.

“There is a risk of legal uncertainty stemming from the possibility of multiple conflicting rulings, compounded by the fact that this involves the potential authorisation of an activity recognised as harmful and of high social risk – namely, the operation of fixed-odds betting,” Fux stated.

He referred to comments made during a public hearing on November 3, 2026, as well as his position in Extraordinary Appeal No. 966,177/RS during the Supreme Court’s August 6 plenary session.

The remarks are significant because they indicate the justice’s concerns extend beyond the legal procedures surrounding the provisional measure to the potential social consequences of fixed-odds betting itself.

However, the suspension does not constitute a final ruling on whether PM 1,394 is constitutional.

That question remains before the full Supreme Court.

Supreme Court Has Yet to Schedule Final Hearing on Betting Ban

The STF has not announced when it will deliver a final decision on the constitutional challenges to Brazil’s betting restrictions.

Chief Justice Edson Fachin has ordered the joint consideration of cases involving fixed-odds betting, municipal lotteries and Extraordinary Appeal No. 966,177, which addresses the legality of games of chance in Brazil.

The decision brings several related legal disputes under a coordinated judicial review process.

Until the Supreme Court reaches a final ruling, lower courts will be unable to proceed with lawsuits challenging the constitutionality of the provisional measure.

The suspension also limits the ability of individual gambling operators to obtain temporary relief through separate constitutional proceedings in ordinary courts.

As a result, the sector faces continued uncertainty over the future of fixed-odds betting while awaiting a definitive decision from the STF.

Congress Faces November 23 Deadline as Amendments Approach 100

The judicial proceedings are unfolding alongside a separate legislative process in Brazil’s National Congress.

Lawmakers must examine Provisional Measure No. 1,394, but the required joint congressional committee has not yet been convened.

Nearly 100 amendments have already been submitted, reflecting the extent of the proposed changes under consideration.

The provisional measure’s initial validity period is scheduled to expire on November 23, 2026, adding urgency to the legislative timetable.

Meanwhile, the failure to vote on the measure has resulted in the congressional floor agenda becoming blocked from Monday, November 9.

The situation leaves the gambling industry facing uncertainty on two fronts, with Congress yet to complete its examination of the provisional measure and the Supreme Court still considering its constitutionality.

Brazil’s Betting Industry Awaits Judicial and Legislative Decisions

The suspension of lower-court proceedings represents a significant development in the legal dispute surrounding Brazil’s fixed-odds betting ban.

By centralising constitutional challenges before the STF, Fux’s order prevents separate courts from issuing potentially conflicting decisions while the legislation remains under review.

However, the ruling also means gambling operators must wait for the Supreme Court’s final judgment rather than pursue individual constitutional challenges through lower courts.

With no hearing date confirmed, nearly 100 congressional amendments pending and the provisional measure approaching its November 23 deadline, the future of Brazil’s fixed-odds betting sector remains unresolved.

The next developments will depend on whether Congress advances the legislation and when the Supreme Court schedules its consideration of the constitutional challenges.