Objective
The lawsuit seeks to declare the unconstitutionality of Law No. 14,790, sanctioned in December 2023, which was the result of the Lula (PT) government's efforts to regulate the sector. In 2022, the government had issued a provisional measure to legalize betting. The CNC also requests a precautionary measure to immediately suspend the effects of the law, interrupting the regulatory process.
Debt
The CNC initiative is part of the market's resistance against sports betting, with criticism that this sector has diverted resources from other economic areas. According to the confederation, the increase in the supply of online bets is worsening household debt, compromising retail trade and impacting the country's economic and social development.
Authorized
Online sports betting was authorized in Brazil in 2018, during the Michel Temer (MDB) government, but was not regulated until the government of Jair Bolsonaro (PL). In 2023, the Lula government intensified efforts to create a regulatory framework for the sector, resulting in the law questioned by the CNC, which updated the 2018 legislation.
Legalization deadline
In response to the growing impact of betting, the government set a deadline for the legalization of the market: only companies that registered by August 20, 2024 will be able to continue operating legally as of October 1. Those that are not registered will be considered illegal and may be removed from the air. This measure was formalized in an executive order after pressure from Congress, including members of the Workers' Party, who proposed initiatives against online gambling.
Social pandemic
Finance Minister Fernando Haddad also spoke out on the subject, highlighting that the regulation seeks to address the problem of gambling addiction, which he classified as a social "pandemic." The government has banned the use of credit cards for gambling, but the rule will only come into effect in January 2025, when the full regulation will come into effect.
Rigor
Acting President Geraldo Alckmin (PSB) met on Tuesday with representatives from the Ministries of Health, Finance and Justice to discuss additional measures to regulate the sector. The meeting took place after a meeting between Alckmin and representatives of the retail trade, who requested more specific rules, including the immediate granting of the use of credit cards for gambling.
Source: GMB
