The Minister of the Supreme Federal Court (STF), Nunes Marques, has decided not to issue a preliminary injunction to suspend the operations of municipal lotteries in Brazil. The dispute between the federal government and local lotteries continues.
The decision by Marques was announced following allegations by the Solidarity party of a violation of fundamental principles (ADPF). The party had requested the suspension of municipal lotteries until the STF could rule on their constitutionality. This case is similar to the ongoing dispute between Lotterj and the government.
The Solidarity party claims that municipal lotteries are causing "real chaos," with jurisdictions bypassing Brazilian federal gambling regulations and allowing companies to operate within municipalities without federal government permission.
The party argues that this could destabilize the newly regulated federal gambling market and also jeopardize player safety.
Marques chose not to suspend the municipal lottery operations but has called on the Solidarity party to provide further information to support their claims within 10 days. He also called on the Attorney General's Office to weigh in before a final ruling.
"Given the relevance of this matter and its impact on social order and legal certainty, it is necessary to obtain opinions from relevant authorities."
He stated that this would influence his final decision and ensure it is unbiased.
The STF will make a final ruling on the Brazilian municipal lotteries
Municipal lottery operations will be allowed to continue until the STF makes a final decision on their constitutionality.
Brazil has 26 states and over 5,500 municipalities, some of which are considering implementing their own laws to establish lotteries and generate local revenue.
A particularly notable case is the city of Bodó, which has just over 2,000 residents but has issued a large number of licenses to operators.
The cost of each municipal license in Bodó is only 5,000 Brazilian Reais (670.29 GBP/796.81 EUR/867.70 USD), while the federal online gambling license costs 30 million Brazilian Reais.
Bodó has ignored federal government threats and has not stopped licensing work, allowing licensees to operate throughout Brazil.
A similar STF case involving the Rio de Janeiro state lottery (Loterj) has been ongoing for months. Multiple entities, including the federal government and the Minister of Justice, have insisted that Lotterj prohibit its licensees from operating outside the state.
In February this year, the STF's latest ruling on the case voted in favor of a preliminary injunction prohibiting Lotterj from allowing its licensees to operate nationwide. It requires Lotterj operators to use geolocation blocking software to ensure players cannot access sites outside the state.
