Six state governors and the Federal District are in disagreement with the Federal Supreme Court (STF) over changes to the Sports Betting Law (law 14,790/23), marking a significant legal dispute.
Through Direct Action of Unconstitutionality (ADIn) 7,640, under the report of minister Luiz Fux, the governors of São Paulo, Minas Gerais, Acre, Paraná, Mato Grosso do Sul, Rio de Janeiro and the Federal District specifically question the restriction imposed by the new legislation.
However, this restriction limits the ability of the same economic group to obtain a concession to operate lottery services in more than one state.
The governors argue that this measure harms the participation of companies in bidding processes, creating a competitive environment that disadvantages some states in relation to others.
They warn that such a restriction tends to affect less economically developed states more severely, as private operators will likely prioritize regions with greater population demand and purchasing power.
Marketing
The governors also question the changes in advertising rules, which prohibit the placement of advertisements in states other than the one where the service is provided. They claim that this measure harms free competition by limiting the ability of lotteries to exploit advertising potential to attract new users.
By emphasizing that advertising seeks exclusively to attract users and does not constitute the provision of the service itself, the governors argue that the law’s restriction to territorial borders violates the principle of reasonableness.
Understand the Betting Bill
Law No. 14,790, of December 29, 2023, is Brazilian legislation that deals with fixed-odd bets, known as bets.
Therefore, it modifies previous laws and establishes rules for the exploration of this type of betting, taxing both companies and bettors.
Furthermore, the law aims to protect consumers, especially against the risks associated with gaming addiction. Finally, the law allows the participation of private companies in a market previously exclusive to the public sector.
