Justice Luiz Fux Orders Stay of All Lower-Court Challenges to Brazil's Provisional Measure Banning Fixed-Odds Betting
Justice Luiz Fux stayed all lower-court lawsuits challenging PM 1,394, the ban on fixed-odds betting in Brazil. The order, at Prosecutor General Paulo Gonet's request, prevents conflicting rulings until the STF rules on ADIs 8024, 8027, 8028, and 8035. No hearing date is set and the measure expires 23 November amid congressional inaction.
SCCG Take — The decision centralizes constitutional review at the STF and removes short-term operator injunctions. Regulators and operators must prepare for full-court ratification and possible legislative extension before the 23 November deadline.
Justice Luiz Fux has ordered the stay of all ongoing lawsuits in lower courts concerning Provisional Measure No. 1,394, which banned fixed-odds betting platforms in Brazil.
Serving as the Reporting Justice for the Direct Actions of Unconstitutionality before the Supreme Federal Court (STF), Fux granted a petition filed by Prosecutor General of the Republic Paulo Gonet. Gonet argued that rulings issued by ordinary lower courts create legal uncertainty and asymmetrical enforcement of the law.
The stay remains in effect until a final ruling on the four ADIs (8024, 8027, 8028, and 8035) that challenge the constitutionality of PM 1,394. Fux ordered the suspension of all ongoing judicial proceedings in ordinary courts that address the constitutionality of the measure.
The petition was filed on 6 November. It cited preliminary injunctions granted to operators Stake and CDA Gaming, which operates Casa de Apostas, Betsul, and Jogo Online. Those injunctions were overturned by the chief judge of the Federal Regional Court of the 3rd Region (TRF-3) within one or two days.
Fux grounded the decision in two federal statutes and the STF's Internal Rules of Procedure. The ruling references the risk of multiple conflicting rulings on an activity recognised as harmful and of high social risk. It cites statements from a public hearing and the justice's opinion in Extraordinary Appeal RE 966,177/RS during the plenary session.
Legal Basis Cited in the Order
One statute requires ratification by absolute majority of the full court for a preliminary injunction in a declaratory action of constitutionality. A second statute permits a reporting justice to grant relief in cases of extreme urgency or risk of severe harm, ad referendum of the full court.
No Date Set for STF Ruling
Chief Justice Edson Fachin has ordered the joint adjudication of all cases concerning fixed-odds betting, municipal lotteries, and the legality of games of chance. No hearing date has been scheduled. The provisional measure expires on 23 November. Congress has failed to convene the required joint committee despite nearly 100 amendments submitted. As reported by iGaming Business, the sector remains hostage to the unresolved proceedings.
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