MAR 1 DE OCTUBRE DE 2024 - 14:22hs.
Second lawsuit against the Betting Law

Political party Solidariedade asks Supreme Federal Court to suspend online betting in Brazil

The Solidariedade Party filed a lawsuit with the Supreme Federal Court (STF) against the so-called ‘Lei das Bets’, which regulates online sports betting. The direct unconstitutionality action is the second against the law. The party cites recent studies that demonstrate the exponential increase in family debt and the risky behavior associated with compulsive gambling.

Last week, the National Confederation of Commerce of Goods, Services and Tourism (CNC) also filed a lawsuit. The rapporteur for the matter, Minister Luiz Fux, called a public hearing for the 11th to provide technical arguments for the analysis of the lawsuits.

In the lawsuit, Solidariedade cites recent studies that demonstrate the exponential increase in family debt and the risky behavior associated with compulsive gambling.

The party also points to the decrease in families' purchasing power and income circulation, including the allocation of resources from social programs for the most financially vulnerable people, such as Bolsa Família.

For the party, the Betting Law (Law 14.790/2023) violates constitutional principles related to the protection of human dignity, the social value of work, free initiative and the right to health. With information from the STF press office.

According to the party, granting the requested precautionary measure is "absolutely essential to prevent Brazilian society from being further impacted by the serious negative consequences that have been affecting the domestic economy," in addition to affecting the mental health of bettors and their families.

"Therefore, the lack of a precautionary measure, with the delay in the natural course of the process until the judgment on the merits, will certainly cause incalculable and irreparable economic and social losses, both current and future," it states.

The party also mentions that a report released by the Central Bank last Tuesday (24/9) revealed that Bolsa Família beneficiaries spent R$3 billion (US$ 550m) on sports betting websites in August alone. According to the BC, the amount is equivalent to 21.2% of the resources distributed by the program in the same month.

Therefore, he requested the STF to grant a precautionary measure to declare Law 14.790/23 unconstitutional, thereby suspending the holding of online gambling games in Brazil. Finally, he also requested, as a precaution, that the ADI be distributed to Minister Luiz Fux, who is also the rapporteur of ADI 7.721.

Fux called for a public hearing on November 11 to discuss the regulation of the ‘Bets’ – as operators are called in Brazil - and other online gambling in Brazil.

The minister is also the rapporteur of ADI 7.640, a lawsuit filed by the governors of São Paulo, Minas Gerais, Acre, Paraná, Mato Grosso do Sul, Rio de Janeiro and the Federal District against parts of the Betting Law. The governors are questioning a specific rule that restricts the same economic group from obtaining a concession to operate lottery services in more than one state.

Source: GMB