Brazil's Attorney General tells Supreme Court operators have no right to compensation over gambling ban

Brazil's Attorney General, Jorge Messias, has asked the Supreme Court to dismiss legal challenges brought by gambling operators against the country's sudden betting ban. His position is that licensed companies have no entitlement to compensation of any kind. The measure is now heading to Congress, which leaves the future of the regulated market uncertain.

Messias filed a 60-page petition with Justice Luiz Fux on October 5, hours before licensed betting websites were due to shut down. It targets requests from the National Association of Games and Lotteries (ANJL), the Brazilian Institute for Responsible Gaming (IBJR) and other parties seeking to suspend Provisional Measure No. 1,394/2026.

The government's argument centres on the nature of the licences. According to the Attorney General of the Union, the authority that allows the state to create a gambling product also allows it to abolish that product. It adds that operators entering the market knew their authorizations could be withdrawn and had no permanent right to keep operating. The government also rejects any duty to refund the 30 million reais (about $6 million) fee paid for each authorization, saying the payment was not an advance that must be returned if the regulatory framework changes. It points to a 2024 ordinance stating that ending an authorization does not give rise to compensation.

ANJL and IBJR are only some of the groups seeking to stop the measure. Broadcasters' association ABERT, football union SINAFUT and individual clubs have also filed petitions, and some are asking for longer transition periods. Operators and suppliers face open questions over licence payments, investments, employment contracts and other commitments made on the assumption that the market would continue.

An IBJR economic study counts 85 licences in the regulated market. At 30 million reais each, the fees alone total 2.55 billion reais, or roughly $509 million. Industry representatives warn that abruptly ending the licences could lead to lengthy litigation, and that even if the market were later restored, companies could still sue for lost profits. A 2025 study by ANJL and IBJR found the regulated sector employed more than 15,000 people.

Fux has not yet ruled on the requests for an injunction. If he sides with operators, the industry would get temporary relief while the wider legal fight continues. Congress has 120 days to vote on the provisional measure, although the legislative recess could push a decision into 2027.