DOM 24 DE NOVIEMBRE DE 2024 - 23:11hs.
One day after Fachin declares himself suspect

André Mendonça is drawn to report on ‘Bets’ and Loterj case at the STF

Minister André Mendonça, of the Federal Supreme Court (STF), was drawn to report on the Original Civil Action (ACO) 3696, which deals with a request from the Attorney General's Office (AGU) to prohibit the Rio de Janeiro State Lottery (Loterj) from authorizing the so-called ‘Bets’ nationwide. The draw takes place after Minister Edson Fachin declared himself suspect on Tuesday night (29).

There are two actions challenging betting in Brazil. Minister Luiz Fux is the rapporteur for the Direct Action of Unconstitutionality (ADI) 7.721, filed with the Supreme Federal Court (STF) by the National Confederation of Commerce in Goods, Services, and Tourism (CNC), which seeks to declare Law 14,790/2023—regulating betting—unconstitutional.

On November 11, a public hearing will take place to discuss the regulation of betting and other online gambling in the country. Among the invitees are the Presidents of the Chamber and Senate, as well as the Finance Minister, Fernando Haddad.

ACO 3696

In ACO 3696, the Office of the Attorney General (AGU) requests an immediate cessation of betting activities in Rio de Janeiro, arguing that the state lottery Loterj’s licensing standards for betting operators are too lenient, failing to restrict online betting within state boundaries and thus allowing for potential money laundering and the financing of terrorist activities.

Loterj, however, contends that suspending betting in the state would violate the principle of legal certainty. The Lottery states that ending these authorizations could result in significant compensation claims, as well as substantial revenue losses.

In practice, the agency bypasses the Ministry of Finance’s Secretariat of Prizes and Betting, which has established specific criteria for the operation of betting sites in Brazil and authorizes 11 sites that have not received federal government approval. These are: Vai de Bet, Ganhabet, Betvip, Caesar Sports, Rio Jogos, Apostou, Pix Hora, PixBet, MarjoSports, Loto Legal, and BestBet.

After being selected as rapporteur, Justice Fachin requested to withdraw from the case one day after the National Association of State Operators of Games and Lotteries requested to join the case as amicus curiae.

Fachin wrote: “Under Article 145, §1, of the Civil Procedure Code and Article 277 of the STF Internal Rules, in light of the subsequent petitions, I declare my recusal in this case. Judicial Secretary, please take the necessary measures under Article 67, §3, of the STF Internal Rules.”

According to O Globo, the association’s petition, which represents online betting and sports lottery operators, was signed by former Justice Minister Eugênio Aragão and attorney Miguel Gualano de Godoy, who has previously advised Justice Fachin.

The newspaper also reports that Godoy worked in Fachin’s office from 2015 to 2017 and remains close to the justice, who even wrote the foreword to Godoy’s 2017 book, ‘Returning the Constitution to the People – A Critique of Judicial Supremacy and Institutional Dialogues.’

The request for the association to join as amicus curiae is still pending review, but Fachin stepped down as rapporteur before that analysis. Though not a party to the case, an amicus curiae can submit information, support the proceedings with relevant data, and even speak during the trial.

Source: Jota