For the governors, this restriction reduces the participation of companies in bidding processes and favors an environment of competition between states in which some tend to lose more than others. The lawsuit is signed by the governors of São Paulo, Minas Gerais, Acre, Paraná, Mato Grosso do Sul, Rio de Janeiro and the Federal District.
Before the request for review (more time for analysis), the rapporteur of the action at the Supreme Court, Justice Luiz Fux, voted in favor of the ADI.
The justice considered that, in the “exercise of its exclusive legislative power over lottery services, the Union cannot establish privileged treatment for itself to the detriment of member states, under penalty of violating the provisions of art. 19, III, of the Federal Constitution and the federative principle,” highlighted the rapporteur in the vote in the virtual plenary session.
Fux voted in line with the governors’ arguments. In the action, the heads of state and the Federal District claim that the consequences of the sections of the law “should fall mainly on the states with less economic strength. This is because, since the private operator is responsible for the concession in only one state, it is expected that the most capable economic agents will prioritize those with greater population demand, as well as those whose population has greater purchasing power, to the detriment of less attractive states.”
Likewise, they consider the change in the rules on advertising to be disproportionate. The current rule prohibits advertising for betting services from being broadcast in a state other than the one in which the service is actually provided.
The governors claim that the service provided by lotteries occurs when a person purchases a ticket, while advertising only seeks to attract a potential user. Therefore, by restricting advertising only to users located within the territorial limits of the entity of the Federation, the law violates reasonableness.
In addition, it is pointed out that part of the law affects free competition, as it prevents the right of lotteries to exploit the advertising potential to attract new users.
Source: GMB
