Brazil Supreme Court freezes legal challenges to betting ban

The Brazil’s Supreme Federal Court (STF) moved to freeze all the lawsuits that are challenging the ban until it rules on the measure’s constitutionality. Justice Luiz Fux a request from the Office of the Prosecutor-General (PGR), arguing that freezing the proceedings would prevent conflicting decisions by lower courts and provide greater legal certainty. Fux highlighted the potential social risks that are related to the fixed-odds betting and the need to avoid inconsistent judicial rulings while the Supreme Court considers the matter. On November 6, Prosecutor-General Paulo Gonet argued that lower courts had begun granting applications allowing betting platforms to resume operations on the grounds that the provisional measure was unconstitutional. The PGR warned that these decisions were creating unequal treatment across the sector before the Supreme Court had established a definitive legal position. This was followed the ruling by Federal Regional Court 3 (TRF-3) appellate judge Adriana Pileggi de Soveral. It granted recently three platforms that operate by CDA Gaming to resume operations. The decision was suspended by Luís Antonio Johonsom di Salvo, the court’s president. The start date for the prohibition on betting and online gaming across Brazil was 25 September 2026, the date when the provisional measure was enacted. Since then, various bodies representing the licensed gambling industry and others have launched complaints against the measure before Brazil’s highest court. Their claims include alleged infringements on the principles of legal security, free market competition, fairness as well as regional administrations’ autonomy. In accordance with requirements of the provisional measure, Brazil’s parliament must examine it within 120 days from the enactment date, or the measure will cease to have power. The parliamentary committee in charge of addressing the issue has yet to be appointed and designated its chair and reporter, which contributes to uncertainty in the Brazilian gambling sector.