The Attorney General’s Office (PGR) presented a Direct Unconstitutionality Action (Adin) to the Federal Supreme Court (STF) that questions the laws that regulate the “bets” market (online betting) in Brazil.
The action, signed by the Attorney General of the Republic, Paulo Gonettargets laws 14,790/2023 and 13,756/2018 – which regulated the activities of bookmakers – and also the series of ordinances issued by the Ministry of Finance that regulated fixed-odds betting in the country.
This type of bet is related to “real or virtual events in which it is defined, at the time of placing the bet, how much the bettor will be able to win in the event of a hit”, says the PGR.
Continues after advertising
No “protection criteria”
The highest body of the Federal Public Ministry (MPF) requests, in general terms, that the rules be immediately suspended by the Supreme Court. If this occurs, bets will not be able to operate in Brazil.
“With the Supreme Court recognizing the unconstitutionality of the provisions that instituted and regulated the new modality of fixed-odd betting based on sporting events and online events, the exercise of the activity will no longer have authorizing normative support, with its practice being considered illicit by the national legislation”, states the PGR in the action.
According to the PGR, the laws on the betting market do not meet “the minimum requirements for the preservation of assets and values of the Federal Constitution” because they allow “the exploitation and indiscriminate dissemination of virtual betting systems based on sporting events (sports betting or bets) and in online gaming events (virtual bookmakers).”
Continues after advertising
“This new market emerged without criteria to protect users of the service and the national market, a circumstance aggravated by the fact that websites and operators are often based in other countries, that is, Brazilian legislation does not apply, making control and inspection, as well as taxation of the activity”, says the PGR.
According to the PGR, Paulo Gonet, “the legislation is insufficient to protect the fundamental rights of consumers, given the predatory nature of the virtual betting market”.
“It comes into conflict with the principles of the economic order and the internal market and with the State’s duty to protect the family unit. Furthermore, it disregards the constitutional imposition of granting public services by concession or permission, through bidding. It also deviates from constitutional restrictions on the advertising of products that pose a high risk to health”, points out Gonet.
