The challenge for noncompliance with a fundamental precept is under the rapporteurship of Minister Nunes Marques.
In the lawsuit, Solidariedade is requesting that all municipal laws and decrees establishing lottery or betting systems be temporarily suspended (by injunction) until the STF rules, on the merits, on their unconstitutionality.
The party argues that these local rules encroach upon the Union’s exclusive power to legislate on the subject, with the aim of increasing revenues “at any cost.”
“There are countless municipalities that have opened up their public structures to unauthorized companies so that, by exploiting lottery activities, they can illegitimately appropriate citizens’ funds—disguised as legitimate by municipal laws,” the party states.
The lawsuit brings together several cases in which private companies have won tenders to operate lottery services granted by municipalities, even without the proper authorization from the Ministry of Finance.
According to Solidariedade, while the ministry sets a value of R$ 30 million (US$5.25m) for these concessions, in some cases companies pay only R$ 5,000 (US$870).
Should municipal lotteries not be invalidated, Solidariedade argues that companies authorized to operate nationwide would have an incentive to expand into municipalities as well.
This would result in greater risk for consumers, due to the lack of guarantees regarding the integrity of the services offered, since each city will have its own set of rules.
Source: Conjur / STF
