Betting Operators Seek Supreme Court Suspension of Executive Order Banning Online Games
Brazil’s sports betting industry was caught off guard by intense legal action. The National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) filed a request on Monday (28) with the Supreme Federal Court (STF) aiming to suspend the effects of an executive order (MP) signed by President Luiz Inácio Lula da Silva (PT). The MP in question seeks the immediate prohibition of various activities related to fixed-odds betting and online games in the country.
Arguments Against the Executive Order
The document, sent to Minister Luiz Fux, who oversees cases concerning the betting sector at the Supreme Court, requests the suspension of the MP until the National Congress concludes its analysis or until the merits of the request are judged. The entities argue that the executive order imposes immediate effects with irreversible potential, questioning the supposed urgency that would justify such action. Additionally, they criticize the shutdown timeline proposed by the government, which, according to them, does not allow for any strategic planning for companies that have already obtained operating licenses. Current legislation mandates that betting sites and apps be deactivated starting October 6.
Abrupt Rule Change
The recent executive order directly conflicts with Law 14.790/2023, sanctioned by the federal government itself in 2023. Operators highlight that they have invested substantial sums, including concession fees reaching R$ 30 million per license, in addition to establishing financial reserves and meeting complex compliance and governance requirements to enter the formal market under executive supervision. In their claims, the entities emphasize the contradiction:
“Now, a short time later, the same State has decided, abruptly and through an executive order, to severely change the rules mid-game that it itself had previously established.”
the document points out.
Impact and Next Steps
The STF’s decision will have a significant impact on the future of sports betting and online games in Brazil. The legal battle between operators and the government sets an important precedent regarding the sector’s regulatory stability. Expectations now turn to Minister Luiz Fux‘s analysis and the National Congress’s stance on the controversy generated by the executive order. The outcome of this issue will define the landscape for companies operating in this market and for the predicted government revenue itself.
By Equipe M360
