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Brazil’s Supreme Court Temporarily Suspends Blocking of Social Program Beneficiaries

The Supreme Federal Court of Brazil (STF) has issued a provisional ruling regarding online betting accounts held by social assistance beneficiaries. Justice Luiz Fux, the rapporteur of the Direct Action of Unconstitutionality (ADI) 7,721, partially granted a precautionary appeal filed by the National Association of Games and Lotteries (ANJL). This decision suspends operational obligations that required betting operators to block accounts of social program recipients. The suspension is effective until the conciliation hearing on February 10, 2026.

What the Decision Changes in Practice

As a result of the ruling, individuals whose accounts were blocked between December 1 and 19 can now regain access to betting sites. However, the ban on registering new accounts for beneficiaries of Bolsa Família and the Continuous Cash Benefit (BPC) remains in effect. This is under Normative Instruction No. 22/2025 issued by the Secretariat of Prizes and Bets of the Ministry of Finance (SPA–MF). Justice Fux emphasized that the suspension applies only to existing accounts. It does not affect new registrations.

This case addresses broader questions about how far regulators can restrict social program beneficiaries from accessing betting platforms. ANJL argued that the operational requirements exceeded the STF’s intended limits, creating legal, technical, and contractual uncertainty for licensed operators. Consequently, automatic blocking of existing accounts became a contentious issue in the regulated market.

Conciliation Hearing Brought Forward

Initially scheduled for February 17, 2026, the conciliation hearing has been moved to February 10. During the session, the government, regulatory bodies, and civil society will explore ways to enforce the precautionary measure. They aim to balance constitutional principles, such as legality, economic freedom, and proportionality.

Implications for the Regulated Betting Market

For operators, the ruling temporarily halts mandatory closures of existing accounts but keeps restrictions on new registrations. ANJL confirmed it will continue to defend the regulated market and keep members informed. Ultimately, the outcome of the conciliation hearing could shape future enforcement actions concerning social welfare recipients in Brazil’s gambling sector.

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