The Supreme Federal Court (STF) has invalidated two provisions of Brazil’s online gambling law: the prohibition on granting lottery services to the same economic group in more than one state and the restriction on advertising by state lotteries to individuals located in the state.
As a result the same company can operate lotteries in different states and advertise these services anywhere. The case analysed concerned only modalities such as number lotteries, numbered tickets, and instant lotteries. Fixed odds sports betting is being challenged in a separate case.
The lawsuit regarding the lotteries was filed last year by the governors of São Paulo, Rio de Janeiro, Minas Gerais, Paraná, Mato Grosso do Sul, Acre, and the Federal District. The governors argued that the restrictions imposed by the law reduced companies’ participation in bidding processes and fostered a competitive environment between states, in which some tended to lose more than others. States with larger populations, or those with greater purchasing power, would be more attractive.
In October STF Minister Luiz Fux suspended the disputed rules. The decision responded to a preliminary request from the São Paulo government before it launched its lottery tender.
The full court subsequently began analysing whether to uphold the injunction and all of its members have now all agreed with Minister Fux’s decision.
In his view, expressed at that time, there was no reasonable justification for prohibiting the concession of lottery services to an economic group in more than one state. Fux emphasized that this is not provided for in Article 175 of the Constitution, which deals with concessions or permissions for the provision of public services.
According to Fux the provisions weaken state lottery services compared to the federal system, and “the Union cannot grant itself preferential treatment.” Fux emphasized that lotteries are important sources of funding for the states.
The minister also argued that a ban on national advertising for companies operating at the state level could affect athlete sponsorships.
“It does not seem reasonable, for example, that the lottery service of a given state cannot sponsor an athlete or a professional football team that will compete in another state or even outside the country; it does not seem reasonable, likewise, that a state lottery cannot, for example, carry out a marketing campaign for a Brazilian national football team match abroad, simply because the event takes place physically outside the territorial limits of the granting state,” wrote Fux.
Fux also considered that there was no valid justification for preventing states from adopting advertising strategies that make the most sense for them, according to their business plans.
The post Brazil’s Supreme Court makes changes to online gambling law appeared first on G3 Newswire.
The Supreme Federal Court (STF) has invalidated two provisions of Brazil’s online gambling law: the prohibition on granting lottery services to the same economic group in more than one state and the restriction on advertising by state lotteries to individuals located in the state. As a result the same company can operate lotteries in different…
The post Brazil’s Supreme Court makes changes to online gambling law appeared first on G3 Newswire.