Brazil's audit court declines to delay betting ban, says licence fee refund claims belong in court

Brazil's Federal Court of Accounts (TCU) has refused to delay the nationwide ban on fixed-odds betting. It also said operators who want part of their licence fees back must take that claim to the courts.

In Acórdão 2865/2026, adopted unanimously at its October 21 plenary session, the court declined to hear a representation from the Public Prosecutor's Office at the TCU (MPTCU) against Provisional Measure 1.394/2026. The measure, signed on September 25, bans fixed-odds betting and online casino games and extinguishes the authorizations granted under Law 14,790/2023. Minister Benjamin Zymler was the rapporteur.

What the prosecutor asked for

According to the ruling, the prosecutor argued that the shutdown timetable was too short. The filing said extinguishing the authorizations breached acquired rights, legal certainty and legitimate expectations, and that keeping licence fees without proportional refunds would unjustly enrich the federal government. It asked for an injunction postponing the ban's effect to December 31, 2026 and adjusting the operational deadlines.

Why the TCU declined

The court said examining those arguments, and granting the injunction, would require abstract review of a measure with the force of law and would replace policy choices made in it. Both fall outside the TCU's competence, it said. The measure is already before Congress and before the Supreme Federal Court under ADI 8.027. With the representation not heard, the injunction request lapsed and the file was archived.

On refunds, the TCU said claims for proportional repayment of licence fees and compensation to operators are "subjective rights of private parties" against the federal government, to be pursued "through the judicial route." The ruling does not say whether any refund is owed. Article 4 of MP 1.394 states that the extinction of authorizations gives operators no right to a full or partial refund of the licence fee, or to compensation from the government.

Revenue estimates

The ruling cites Explanatory Memorandum 2,114/2026, which estimates lost tax revenue of R$1.541 billion in 2026, R$5.150 billion in 2027 and R$5.330 billion in 2028, plus lost supervision-fee income. The TCU found no sufficient sign of irregularity on this point. It ordered a copy of the decision to be added to its ongoing reviews of bimonthly revenue assessments (TC 018.918/2026-3) and the 2027 budget bill (TC 016.141/2026-1).

The Supreme Federal Court scheduled a public hearing on the ban for November 3. Congress has until November 23 to vote on the measure, a deadline that can be extended once. For what happened to the 85 federal licences, see our report on Brazil's lapsed betting licences.

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