Minister Luiz Fux, of the Federal Supreme Court (STF), made a decision that could change the betting scenario in Brazil. Last Wednesday (23), he suspended the rule that prevented certain economic groups from operating lottery services in more than one state.
Furthermore, the restriction on advertising these games to residents of other states has also been lifted. Therefore, this action promises to generate significant repercussions in the lottery and sports betting market.
Fiscal federalism taken into account
The request for an injunction that motivated Fux’s decision came from the São Paulo government. The state attorney’s office argued that maintaining the rules established by Law 14,790/2023, known as the Sports Betting Law, could compromise an essential auction.
This auction, which aims to grant lottery services, is scheduled for October 28th. For the minister, it makes no sense for federal regulations to create restrictions on state finances without plausible justification.
“In light of the idea of fiscal federalism, the Union cannot impose obstacles to the full exercise of tax collection powers by the states, especially without any reasonable justification”, emphasized Fux.
But, it is worth remembering that this action has been in progress at the STF since May, being filed by governors of six states and the Federal District. The issue would be analyzed in a virtual session on the 18th of this month, but a request for a review from Minister Gilmar Mendes suspended the judgment.
So, faced with São Paulo’s request, Fux decided to intervene and define the issue quickly, showing the urgency of the issue for the regional economic scenario.
See Minister Luiz Fux’s decision in full below.
Luiz Fux’s decision will impact the betting market
It is important to highlight that this decision is not directly related to the legality of the online betting market in Brazil. The regulation of these bets, also known as “bets”, is the subject of discussion in the Supreme Court.
On September 24, the National Confederation of Commerce in Goods, Services and Tourism (CNC) filed a direct action of unconstitutionality against Law 14,790/2023.
The CNC argues that this legislation, by allowing the promotion of gambling, brings negative consequences for less favored social classes. Furthermore, it could contribute to an increase in family debt.
A public hearing at the STF on the matter is scheduled for November 11th this year, with representatives from the betting sector, football teams, representatives of the Central Bank and the federal government.