Brazil Betting Operators Challenge R$2.55 Billion Licence Fee “Confiscation” at Supreme Court

Brazilian gambling associations have filed a new petition with the Supreme Federal Court, challenging the government's decision to revoke betting licences without refunding R$2.55 billion paid by operators for five-year authorisations.

Brazil's legal dispute over the nationwide betting ban has intensified after the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) submitted a new petition to the Supreme Federal Court (STF) on October 26.

The associations are seeking urgent intervention from Justice Luiz Fux following the expiration of federal betting licences on October 25, under Provisional Measure No. 1,394/2026.

According to industry representatives, 83 betting companies paid a combined R$2.55 billion for 85 authorisations, each costing R$30 million and originally valid for five years. However, the legislation terminates these licences without providing refunds or compensation.

The associations describe the measure as an effective confiscation of funds paid to the government, arguing that it violates legal certainty and undermines investor confidence.

The petition also highlights wider economic consequences. Industry estimates suggest that at least 15,000 jobs are at risk, while betting sponsorships contributed more than R$1 billion to Brazilian Serie A football clubs in 2025.

The organisations additionally warn that illegal gambling activity may increase as licensed operators leave the market, citing research indicating a sharp rise in suspicious betting websites following the prohibition.

ANJL and IBJR are requesting the immediate suspension of the measure until Congress or the Supreme Court reaches a final decision. Alternatively, they propose temporary protection for previously licensed operators or a transition period extending to December 31, 2026.

No ruling on the new request had been announced by October 27.

The dispute introduces a significant financial dimension to Brazil's betting prohibition. Beyond the future of gambling operations, the Supreme Court may now face questions concerning compensation, contractual rights and the government's responsibility towards businesses that invested under the previous regulatory framework.