Brazilian Supreme Court Justice Declines to Suspend Municipal Lotteries
A Justice of Brazil’s Supreme Federal Court (STF), Nunes Marques, has decided against issuing an injunction to suspend the operations of municipal lotteries across the country. This ruling maintains the ongoing dispute between the federal government and regional lotteries.
Marques’ decision, released on Tuesday, stems from a challenge presented by the Solidariedade party. The party’s action requested the suspension of municipal lotteries until the STF could determine whether they violate the Constitution. This situation mirrors an existing conflict between the Rio de Janeiro State Lottery (Loterj) and the federal government.
Solidariedade argued that municipal lotteries are creating a “truly chaotic scenario” where municipalities are circumventing federal betting regulations, allowing unlicensed companies to operate.
The party contends that this is causing financial instability in the newly regulated federal betting market and endangering the security of bettors.
While opting not to suspend municipal lottery operations, Marques has requested that Solidariedade provide further evidence to support its claims within 10 days. He has also requested an opinion from the Attorney General’s Office before making a final decision.
“Given the relevance of the matter and its impact on social order and legal certainty, it is necessary to obtain the views of the authorities involved.”
He stated that this input will influence his final judgment and ensure an impartial decision.
STF to Make Final Ruling on Brazil Municipal Lotteries
Municipal lottery operations can continue until the STF reaches a definitive decision on their constitutionality.
Brazil has 26 states and over 5,500 municipalities, some of which are seeking to implement their own laws to establish lotteries and generate local revenue.
One notable example is the municipality of Bodó, with just over 2,000 residents, which has already issued several licenses to operators.
Each municipal license in Bodó costs only R$ 5,000, while a federal license for online betting costs R$ 30 million.
Bodó has consistently disregarded federal government warnings to cease issuing licenses and allowing its licensees to operate nationwide.
A similar case involving Loterj has been ongoing in the STF for several months. Various entities, including the federal government and the Attorney General’s Office, insist that Loterj must prohibit its licensees from operating outside the state.
In its most recent decision on the Loterj case in February, the STF upheld an injunction prohibiting Loterj from allowing its operators to operate nationwide. The decision requires Loterj licensees to implement geolocation blocking software to prevent access from users outside the state.
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