The Attorney General’s Office (AGU) presented a favorable opinion to the Secretariat of Prizes and Bets (SPA) in the Claim of Non-Compliance with a Fundamental Precept (ADPF 1212), which is being processed at the Supreme Federal Court (STF). Minister Kassio Nunes Marques is the rapporteur of the case.
The Solidariedade party proposed the constitutional action, therefore, the party requests an injunction and a declaration of unconstitutionality of municipal legislation related to lotteries and local gambling.
The AGU document sent to the STF argues that the provision of lottery services should be exclusive to the Union, the states and the Federal District. Based on the Federal Constitution, the AGU requests the suspension of municipal laws that allow the creation of lotteries.
Approximately 150 Brazilian municipalities have their own betting operations. The sector generated more than R$120 billion in revenue in 2023 alone, and the main difference between the different types of betting is the entry fees.
The federal department demands a grant of R$30 million from companies. On the other hand, municipalities charge amounts between R$5,000 and R$100,000. This disparity represents the center of the legal discussion.
AGU’s position on betting services
The AGU highlighted: “The matter requires a high degree of regulatory care from the legislator, expressed through strong and secure regulation, and which combines the development of an efficient monitoring structure with an overt oversight provision, under penalty of serious state omission regarding the dangers of predatory exploitation of this type of service”.
The public attorney’s opinion could concentrate the national market. If it prevails, only the ten largest companies would remain in operation. All of these companies are federally registered.
It is worth mentioning that in recent months, several cities have approved or are analyzing projects to start their own lotteries, such as Chapecó, Canoas, Aracaju, Botucatu, among others.
Thus, the STF decision will directly impact the betting and lottery market in Brazil. As a result, hundreds of municipal operations already established or in progress may be terminated.
