The online betting scenario in Brazil changes with the draw of Minister André Mendonça, of the Federal Supreme Court (STF), to report Original Civil Action (ACO) 3696.
This action, proposed by the Attorney General’s Office (AGU), seeks to prohibit the Rio de Janeiro State Lottery (Loterj) from authorizing online betting houses in the country. This designation occurred after minister Edson Fachin declared himself a suspect last Tuesday night (29).
Public hearing at the STF and next steps
Currently, the debate about betting in Brazil divides opinions, reflecting the complexity of the topic. There are, in total, two actions that question the legality of the so-called “bets”.
Minister Luiz Fux will be the rapporteur of the Direct Action of Unconstitutionality (ADI) 7,721, proposed by the National Confederation of Commerce in Goods, Services and Tourism (CNC). This action challenges the unconstitutionality of Law 14,790/2023, which regulated betting.
The betting situation in Brazil will be debated at a public hearing scheduled for November 11th. This event will serve as a crucial space to discuss the regulation of betting and other online games. Among the guests, the presidents of the Chamber and the Senate stand out, as well as the Minister of Finance, Fernando Haddad.
Therefore, there are high expectations regarding this audience, which could shape the future of betting in Brazil. At the same time, effective rules can benefit both the government, through tax collection, and players, who seek security on betting platforms.
Possible impacts of regulation
If the AGU proposal is accepted, the impact could be significant for the betting market. Loterj’s prohibition on authorizing online betting houses nationwide could make many operations that are already in operation or that intend to start their activities unfeasible.
The presence of entities such as the CNC demonstrates the sector’s interest in discussing the best forms of action and the necessary guarantees for citizens. Thus, the public hearing, scheduled for next month, could be a watershed in decisions about betting in Brazil.
Loterj files lawsuit to defend bets in Rio de Janeiro
The Rio de Janeiro State Lottery (Loterj) filed a public civil action with the 13th Federal Civil Court of the SJDF last Tuesday (29). This Public Civil Action (ACP) serves to protect collective or diffuse interests. Furthermore, it holds perpetrators of harm caused to society accountable.
Therefore, Loterj seeks an injunction against the Federal Union, the Secretariat of Prizes and Bets of the Ministry of Treasury (SPA/MF) and Secretary Regis Dudena. In other words, the request aims to immediately suspend the national list of fixed-odd betting companies, officially published by SPA/MF.
The action is based on a recent theme established by the STF under a General Repercussion regime. It points to the violation of articles of the Federal Constitution, resulting in serious damage to public and social property.
On September 28, the STF judged RE 1,498,128/CE, which addresses the “Requirement for state delegation for the exploration of lotteries by private agents, without prior bidding”.
The court confirmed that the operation of lotteries by private agents requires prior bidding. Thus, he established the thesis that “the execution of the public lottery service by private agents depends on state delegation preceded by bidding.”
