TLDR
- Brazil’s Supreme Federal Court has frozen all legal challenges to the country’s betting ban.
- Licensed operators invested R$2.55 billion in total to enter the regulated market.
- Each licence cost R$30 million and covered five years and up to three brands.
- Nearly 47,000 illegal betting websites have been blocked since September 25.
- Industry groups argue the ban is unconstitutional and could cost jobs.
Licensed betting companies in Brazil are waiting for the Supreme Federal Court (STF) to decide the fate of the R$2.55 billion they invested to enter the market. A provisional measure banning sports betting and online gambling has been in force since September 25.
The government has kept the ban in place during the legal fight. It continues to go after operators that do not hold a licence.
Nearly 47,000 illegal betting websites have been blocked since the ban took effect. The figures come from the Secretariat of Prizes and Betting (SPA), part of the Ministry of Finance.
The agency said about 1,100 illegal websites have been shut down each day since the measure was put in place. The numbers show the size of the illegal gambling market that authorities are dealing with.
Licensed Operators Paid to Enter the Market
Before the ban, Brazil had set up a licensing system for betting companies. Operators paid R$30 million to the Ministry of Finance for a five-year licence.
Each licence allowed a company to run up to three betting brands in Brazil. Across the industry, companies invested a total of R$2.55 billion.
The government collected R$500 million in licensing fees through that process. Companies that went through the system have opposed the provisional measure.
Their main concern is whether they can recover the money they spent to get authorized. These firms obtained their licences under the rules in place before the ban.
Two industry groups took the fight to the Supreme Court. The National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) filed a petition before Justice Luiz Fux.
The groups asked for the provisional measure to be set aside. They argued that the ban breaks the constitution and could lead to job losses and billions of reais in losses.
Their petition pointed to the economic and legal impact the ban could have on the regulated market. Licensed firms want assurance that their investments are protected.
Court Freezes All Challenges
Justice Fux then halted all court proceedings challenging the ban. His ruling followed a request from the Office of the Prosecutor General (PGR).
Fux said the pause will stop different courts from issuing conflicting rulings. He described the matter as one of great legal and social concern.
In his decision, the justice pointed to the risk of legal uncertainty from multiple opposing decisions. He added that the case involves the possible authorization of fixed-odds betting, which he called “an activity recognized as harmful.”
The freeze means lower courts cannot rule on challenges to the ban for now. Licensed companies have no other legal route for relief while the suspension stands.
All of the cases will stay on hold at the Supreme Court. They will remain pending until the court makes a final ruling on whether the government’s ban is constitutional.
