Brazilian Trade Groups Ask Supreme Court To Suspend Online Betting Ban
Industry associations have asked Brazil’s Supreme Federal Court to suspend a provisional measure banning online betting while Congress and the court consider its legality.
Three Brazilian gambling industry associations have launched legal challenges against the provisional measure introduced by President Luiz Inácio Lula da Silva to prohibit online betting and gaming in the country.
The measure, signed on 25 September, took immediate effect and prohibits the operation, offering, intermediation and advertising of fixed-odds betting. Existing platforms face a timetable for closing their operations, while current licences are due to be revoked 30 days after publication.
As a provisional measure, the rules have immediate legal effect but require consideration by Congress to remain in force beyond the permitted period.
Industry groups have now asked the Supreme Federal Court (STF) to suspend the measure while its legality and future are considered.
ANJL And IBJR File Joint Petition
The National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR) filed a joint petition on 28 September requesting that Justice Luiz Fux suspend the measure.
The request was submitted as part of existing STF proceedings concerning the constitutionality of Brazil’s regulated betting framework.
ANJL and IBJR are seeking a full suspension of the provisional measure until Congress decides whether to approve, reject or allow it to lapse, or until the STF rules on the matter.
If granted, the request would allow existing licences to remain in effect during the review.
The associations have also proposed alternative measures. One would suspend the measure specifically for existing licensees, while another would introduce a wind-down period of at least six months.
Under the latter proposal, operators would submit discontinuation plans to the Secretariat of Prizes and Betting (SPA) while being permitted to continue operating during the transition.
ANJL and IBJR argue that the circumstances do not meet the constitutional requirements of relevance and urgency for introducing the changes through a provisional measure.
They also argue that issues surrounding vulnerable consumers, advertising and online casino gaming had already been considered during the development of Brazil’s regulated betting framework.
The associations have requested that several government and regulatory bodies be prevented from enforcing the measure if an injunction is granted, including the Finance Ministry, Justice Ministry, Central Bank and telecommunications regulator Anatel.
Further Legal Challenges Expected
ANJL has also said it intends to file a separate legal action specifically challenging the provisional measure.
The association is expected to ask the STF to declare the measure unconstitutional while seeking confirmation of the constitutionality of Brazil’s existing betting legislation.
Separately, the National Association for Legal Certainty in Gaming and Betting (Anseja) has filed a direct action of unconstitutionality challenging the measure and requested an urgent injunction suspending its effects.
The STF has not yet ruled on the requests. The Office of the Attorney General of the Union has requested 72 hours to present the federal government’s position before Justice Fux considers the challenges.
