The Attorney General of the Republic (PRG), Paulo Gonet, presented an opinion to the Federal Supreme Court (STF) defending the constitutionality of recent changes to Law no. 13,756/2018. These changes impose restrictions on state and Federal District lotteries, generating debate about state autonomy and regulation of the sector.
The main changes in question are:
- Limitation on business participation: The same economic group or legal entity can only operate the lottery service in a single unit of the federation.
- Advertising restriction: Prohibition of lotteries in one federative unit advertising in another.
Gonet argues that these restrictions are in line with the Union’s constitutional competences, including:
- Lottery system regulation
- Promotion and planning of economic activity
- Establishment of the general regime for concessions and permissions for public services
The PGR’s opinion responds to Direct Action of Unconstitutionality (ADI) 7640, proposed by six states (São Paulo, Minas Gerais, Paraná, Acre, Mato Grosso do Sul and Rio de Janeiro) and the Federal District. These federative entities question the validity of paragraphs 2 and 4 of article 35-A of the federal law.
State lotteries: arguments from the Attorney General’s Office
Arguments of the Attorney General’s Office in defense of constitutionality:
- Prevention of economic concentration: The restrictions aim to prevent the concentration of private economic power in a sensitive sector for the economy.
- Promotion of competition: Limiting activity by economic group seeks to open the market to new agents, intensifying competition.
- Balance between states: The advertising restriction aims to prevent states with more resources from disproportionately attracting bettors from other units of the federation.
Gonet emphasizes the exclusive competence of the Union to legislate on consortium systems and draws in Brazil, arguing that states can only explore lottery services within the limits established by federal legislation.
The attorney general concludes that the geographic restrictions on the operation of lotteries also justify the geographic limitation of advertising, reinforcing the coherence of the law with constitutional principles.
This legal controversy highlights the delicate balance between state autonomy and federal regulation in the lottery sector, with potential significant implications for the Brazilian lottery market and state revenues.
