The statement by the PGR, which reinforces the request made by the AGU, was presented last Friday (25) at the request of the rapporteur of the action, Minister Edson Fachin.
The AGU filed an Original Civil Action (ACO 3696) with the STF requesting an injunction so that the so-called bets accredited only by Loterj, and not by the Ministry of Finance, are prevented from operating nationwide.
In the action, the AGU argues that the legislation of the sector allows states to operate the activity only in a manner limited to the state territory and, furthermore, it is the responsibility of the Union to operate the lottery service nationwide, as well as to accredit companies to operate throughout the country.
According to the AGU, Loterj adopts a system in which bettors declare that the bets will be made in the state of Rio de Janeiro. However, there is no geolocation system that guarantees that these bets actually originate from the state. The system also does not block bets from other regions.
According to the terms of the action, in practice, Loterj accredits companies to operate the service nationwide, which has harmful consequences for the federative pact and free competition. Furthermore, operating nationwide violates the rules of the Ministry of Finance and invades the jurisdiction of the Union by operating lottery services throughout the national territory.
The lawsuit cites, as an example of violation of equality between federative entities and free competition, that the states of Paraná and Maranhão require the use of geolocation mechanisms for the operation of lottery services.
What the PGR says
The PGR states in its statement to the Supreme Court that the relaxation of the territorial limitation "has the potential to generate the federative imbalance raised in the initial petition [by the AGU]," and that, as explained in a technical note from the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance, the criterion adopted by Loterj "functions as a perverse incentive for predatory competition between federative entities, analogous to a scenario of fiscal war," says an excerpt from the statement by the Attorney General's Office.
In agreeing with the AGU's request for a preliminary decision, the PGR cites as justification the risk that Loterj's actions could cause a negative impact on the relationship between the states of the federation. The analysis of the request for a preliminary injunction will be carried out by the rapporteur of the lawsuit, Minister Edson Fachin.
Source: GMB
