Justice Luiz Fux of the Federal Supreme Court (STF) has determined the partial suspension of the effects of norms from the Ministry of Finance that established the blocking and compulsory closing of active accounts on online gambling platforms used by beneficiaries of social programs in Brazil.
In the same decision, made on Friday (19), Fux advanced the conciliation hearing regarding the Direct Action of Unconstitutionality (ADI) 7721 to February 10, 2026, at 3 PM. Previously, the hearing was scheduled for March 17.
According to Fux, the operational obligations imposing the blocking and closure of existing accounts are suspended until the hearing takes place. Fux clarified that the unblocking pertains to amounts exceeding the value of the Bolsa Família and the Continuous Cash Benefit (BPC) welfare programmes. However, the prohibition on new registrations or opening new accounts remains in effect to prevent beneficiaries from participating in gambling.
The measure was adopted due to the upcoming judicial recess and the risk of irreversibility of concrete acts taken based on the Ministry of Finance’s Ordinance SPA/MF 2.217/2025 and the Normative Instruction SPA/MF No. 22/2025 both published in October. These regulate the restriction on the participation of beneficiaries of both welfare programmes in fixed-odds betting. The measure complies with the precautionary judicial decision of the Supreme Federal Court (STF) in Direct Actions of Unconstitutionality (ADIs) No. 7721 and 7723.
In a previous precautionary decision, endorsed by the Plenary in November 2024, the STF ordered the federal government to take measures to prevent the use of resources from social programs in online gambling, given the negative impacts on family budgets and mental health, especially for vulnerable individuals.
To comply with this decision, the Ministry of Finance enacted norms that prohibit the registration and use of gambling platforms by beneficiaries of these programs and also foresee the closure of existing accounts.
The National Association of Games and Lotteries argued in the process that these normative acts would exceed the scope of the Supreme Court’s decision by broadly affecting active accounts, including those with resources not derived from assistance benefits.
In reviewing the request, Minister Luiz Fux deemed it necessary to preserve the useful result of the process and to allow a specific discussion on this point at the conciliation hearing. He stated that the temporary suspension prevents irreversible harm without eliminating the prohibition on opening new accounts, which remains in force.
The conciliation hearing will bring together representatives from the National Confederation of Commerce of Goods, Services, and Tourism (CNC), the Brazilian Association of Economic Freedom (ABLE), the federal government, the Ministry of Finance, and the Attorney General of the Republic (PGR), with the aim of clarifying the limits and effects of the measures already in effect.
In Brazil a Direct Action of Unconstitutionality (ADI), is a specific legal tool in the STF used to challenge federal or state laws and normative acts directly before the highest court, seeking a definitive ruling on whether they comply with the Brazilian Federal Constitution.
In September 2024 The Solidarity Party filed a lawsuit with the STF against Brazil’s online sports betting law. The Direct Action of Unconstitutionality (ADI 7723) was the second against the law – the first was filed by the National Confederation of Commerce of Goods, Services and Tourism (CNC).
In ADI 7723, the Solidarity party cites recent studies and surveys that demonstrate the exponential increase in household debt and the risky behaviour associated with compulsive gambling. It also points to the decrease in families’ purchasing power and income circulation, including the allocation of resources from social programs for the most financially vulnerable people, such as Bolsa Família.
Meanwhile ADI 7721 filed by the CNC requested the immediate suspension and subsequent annulment of the law regulating fixed-odds sports betting in Brazil, citing negative impacts on the national economy and public health, as well as the potential exposure of minors to online gambling and betting.
The post Brazil’s Supreme Court justice partially suspends blocking of gambling accounts for social program beneficiaries appeared first on G3 Newswire.
Justice Luiz Fux of the Federal Supreme Court (STF) has determined the partial suspension of the effects of norms from the Ministry of Finance that established the blocking and compulsory closing of active accounts on online gambling platforms used by beneficiaries of social programs in Brazil. In the same decision, made on Friday (19), Fux advanced…
The post Brazil’s Supreme Court justice partially suspends blocking of gambling accounts for social program beneficiaries appeared first on G3 Newswire.