STF Motions May Accelerate Legalization of Games and Casinos in Brazil

The Federal Supreme Court (STF) can grant a significant advance to the issue of legalizing the sports betting and gaming sector in the national territory. This is because there is a debate about breaking the monopoly of Caixa Econômica Federal in lotteries, since there are two actions currently underway.

One motion has the president of the STF, Luiz Fux as its rapporteur, while the other is with Minister Edson Fachin, who may or may not end the ban on the segment with their respective votes as reports.

This is because the failure to receive Article 50 of the 1941 Law by the 1985 Federal Constitution tends to present a way for the resumption of practices in Brazil. Recalling that casinos and bingos are considered “games of chance” according to the Criminal Misdemeanor Law, which will reach eight decades of validity next year.

The return of games to legality is a possibility raised by companies in the segment, since part of the operations was suspended in the country by then President Luis Inácio Lula da Silva in 2003. The issue is similar to what was evaluated by the STF recently, which ended with decree granting exclusive exploitation of lotteries to the Union

Following this Supreme Court decision, several states that were prevented from opening or expanding lottery games are already creating study groups in order to plan the launch of lotteries in the first half of next year.

According to an article by Leandro Mazzini, in Folha Vitória, the debates on the increase of the collection for the public coffers are added to the need to transfer both for sports projects and for Social Action actions, through state initiatives.

Debate on the return of betting in Brazil

Since the end of 2018, the sports betting regulation process has been taking place on the national scene. Recently, the Federal Government instructed the National Bank for Social Development (BNDES) to create rules and guidelines for a business model.