Brazil betting industry pushes back on market ban in court

On November 3, 2026, Brazil’s Ministry of Finance stated to the Supreme Federal Court (STF) that the regulated betting market had been a significant step forward, while still defending Provisional Measure 1.394/2026, which shut it down.

Speaking at a public hearing led by Justice Luiz Fux, the ministry said licensing had improved supervision and player protection but hadn’t contained the economic, social, and health damage, estimating a hit to GDP of R120 billion to R140 billion without citing sources. The Health Ministry added that people with gambling disorder face a 15 times higher risk of suicide.

Opponents used the government’s own figures against it, with the Brazilian Association for Economic Freedom (ABLE) noting that betting revenue was less than 0.5% of household consumption, and official data show the sector paid R 9.95 billion in federal taxes and R4.53 billion in levies in 2025. The International Gaming Association suggested that fixed-odds betting could be run under the same model as the federal lotteries operated by state bank Caixa, and the mayors’ association ANPV argued the measure failed the urgency test, having been signed nine days before the first round of the presidential election.

The Brazilian Institute for Responsible Gaming (IBJR) said:

“I did not hear anyone here, all afternoon, say they will end illegal gambling. What I heard is that they want to end regulated gambling.”

Abert, which represents more than 2,500 radio and TV stations, described the ban as a reversal of established policy.

Gustavo Binenbojm, representing Abert, said:

“It was a pragmatic choice that recognised the sector’s risks without handing the market over to illegality and organised crime.”

The Prosecutor General’s Office took no position, and Fux closed the hearing by suggesting the court may not always be the right forum to settle such disputes. Congress has until November 23 to vote on the measure before its 60-day period is extended automatically.