Regulatory Radar | Fixed-Odds Betting – Ed. 23

Week of November 9–13, 2026

The dispute has left the lower courts and moved to two arenas: the Supreme Court, which suspended all lawsuits against the ban and is preparing a joint ruling, and Congress, where the provisional measure gained another 60 days and a bill criminalising the activity began to block the agenda. Meanwhile, the regulator published the first rule of the wind-down.

Supreme Court suspends all lawsuits against the provisional measure and closes the route of individual litigation

On Sunday (Nov 8), Justice Luiz Fux, rapporteur of the cases against the provisional measure that banned fixed-odds betting, granted a request from the Prosecutor General and suspended, nationwide, all proceedings challenging the measure’s constitutionality until the Supreme Court issues a final ruling. On Monday (Nov 9), the Court sent a notice to every state and federal court for immediate compliance. The decision was issued by the rapporteur alone and still needs to be upheld by the full bench, with no date set. Since the last ruling in favour of operators had already been suspended by the São Paulo federal appeals court days earlier, no former licensee is still operating under court protection.

What this means: individual lawsuits on this issue are on hold, and the dispute now plays out in the Supreme Court and in Congress. It is not yet clear whether the suspension also covers damages claims or contract disputes that depend on the measure’s validity; we recommend assessing each case rather than assuming either way.

The Supreme Court sets the stage for a joint ruling on gaming as a whole

On Thursday (Nov 12), Justice Flávio Dino returned the case, which he had held for review, on whether the Criminal Misdemeanours Act still applies to games of chance. The appeal was cleared for an in-person plenary hearing, with no date yet. This was the last pending step for the joint ruling the Court has already signalled, covering municipal lotteries, the Betting Act and the challenges to the provisional measure. Everything points to a ruling on the merits only in 2027.

What this means: the Court is likely to decide the gaming question in one go, with effects on operators and on state and municipal lotteries. The period until the hearing is the time to prepare briefs and transition proposals.

Prizes and Betting Secretariat regulates the financial reserve of operators winding down

In an extra edition of the Official Gazette on Nov 10, the Prizes and Betting Secretariat (SPA) of the Ministry of Finance published a normative instruction on the financial reserve that operators must keep. The reserve can be used to pay bettors when the balance of transactional accounts falls short, and can be released to the operator when there are no known obligations. Release requires audited financial statements for 2025 and as of Oct 31, 2026 (or a later date), a special assurance report from an auditor registered with the Brazilian Securities Commission (CVM), and a statement signed by two officers, with no attorney-in-fact allowed. The rule took effect upon publication.

What this means: this is the first operational rule of the wind-down, and it directly affects the cash position of former licensees. Those planning to recover the reserve should engage auditors now with the new reference date and review the officers’ statement carefully, as it creates personal liability.

The provisional measure is extended, gains urgency status and still has no committee

Congress extended the measure for another 60 days (act published on Nov 11), as the Constitution provides automatically. Since Nov 9 it has been under urgency status, blocking the agenda, but the joint committee has not been set up and has no rapporteur. With the time limit suspended during the recess, the final deadline is March 4, 2027. A total of 99 amendments have been filed, some seeking to reopen sports betting or ease advertising restrictions. On the other side, a caucus of nearly 200 lawmakers launched an anti-betting pact in the Chamber of Deputies (Nov 10), and the government treats approval as a priority before the recess.

What this means: Congress is now the decisive arena, and both sides are organising. There are signs that a possible deal would reopen only sports betting while keeping online casino banned. The choice of rapporteur will be the next milestone.

Bill making unlicensed betting a crime now blocks the Chamber of Deputies’ agenda

The Executive’s bill creating crimes related to fixed-odds betting has run out its constitutional urgency period and, as of today (Nov 13), blocks the agenda of the Chamber of Deputies. The bill is still awaiting referral to committees and has no rapporteur. Under the bill, operating betting without authorisation would no longer be just an administrative offence but a crime punishable by 4 to 6 years in prison, including for operators holding a foreign licence.

What this means: pressure to refer, vote on or negotiate the withdrawal of urgency starts next week. If approved, the risk shifts from regulatory to criminal, for companies and their officers. It is worth reviewing now the exposure of any structures still serving Brazilian customers.

The end of sponsorships opens a front of contract disputes in sport and media

The knock-on effects have grown: a radio broadcaster laid off around 20 staff after contracts with betting companies were suspended, a state football federation says it may cut club payouts in 2027, and state-owned companies suspended club sponsorships. In one public case, an operator relies on a change-in-law clause to terminate a long-term contract without penalty and to claim back advance payments, while the club argues that a provisional measure, being provisional, is not enough to justify termination.

What this means: change-in-law, force majeure and rebalancing clauses will be tested, and the provisional nature of the measure carries weight in that discussion. We recommend mapping sponsorship, media and affiliate contracts, including notice periods and amounts paid in advance, before taking any step.

Consumer litigation remains split and raises a warning on self-exclusion

Our litigation monitoring recorded 58 decisions this week involving former licensees, almost all at first instance and in small claims courts. The gambling-addiction argument remains split, with rulings ordering refunds of losses and others dismissing claims in the same court. A São Paulo appellate panel held that limiting winning bettors without specific grounds is an abuse of rights. A new pattern has also emerged: self-excluded bettors who received advertising are being awarded moral damages. By contrast, requests to freeze operators’ assets after the measure are being denied.

What this means: closing the market does not close the liabilities. Self-exclusion databases and communication records must be preserved, and defences need documentary evidence on responsible gaming and account limits.

Looking ahead to next week

• Chamber of Deputies: referral, rapporteur or a deal on the bill criminalising unlicensed betting, which blocks the agenda.
• Congress: possible set-up of the joint committee on the provisional measure and choice of rapporteur; a new 60-day count starts on Nov 24.
• Senate: a bill strengthening mental health and consumer protection in betting is ready for a vote in a committee with final say.
• Supreme Court: plenary review of the nationwide suspension and a possible date for the joint ruling.

Our team is available to discuss how any of these issues may affect your business.

This material is for information purposes only and does not constitute legal advice. The analyses reflect the team’s understanding at the date of publication and may be revised as regulations and case law evolve. For specific guidance on particular situations, please consult a member of our team. © Souto, Correa Advogados – Gaming & Betting Practice.