Brazil's Attorney General's Office (AGU) has urged the Supreme Federal Court (STF) to dismiss preliminary injunctions related to Direct Actions of Unconstitutionality (ADIs) concerning the recent betting ban implemented by President Lula through a provisional measure in late September. Justice Luiz Fux, the rapporteur for these cases, had previously requested input from the AGU on maintaining the prohibition of betting.
The AGU contended that the prosecutor general of Brazil should express their views within 72 hours before Justice Fux makes a decision on the requests to overturn the ban, which has been challenged by the National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR).
According to the AGU, the current legislation on betting is "extensively flawed," citing concerns about protecting minors and preventing illegal activities such as money laundering. However, the AGU's stance did not acknowledge the preventive measures adopted by the sector against such violations, primarily those carried out by illegal websites that do not adhere to regulations.
Additionally, the AGU has called for a new public hearing to refresh the discussions from November 2024. The timing of the betting ban, which was enacted shortly before Brazil's presidential election, has drawn criticism, with allegations that it was a political maneuver. This new hearing request is expected to amplify this criticism, raising questions about the urgency of the ban prior to an electoral decision.
As the ongoing uncertainty persists, the betting industry faces significant revenue losses and potential tax income shortfalls for the government. Moreover, the AGU's appeal aims to prolong any decisions favorable to the betting sector until after the second round of elections, which are scheduled for October 25, in which President Lula and Flávio Bolsonaro advanced to a runoff.
The AGU rejected claims from the ANJL and IBJR that the ban disrupts legal certainty and may push bettors towards illicit markets. In its defense, the AGU highlighted that 10,435 illegal websites were blocked in the week immediately following the enactment of the provisional measure and that efforts to remove over 3,000 additional online presences were underway. While they acknowledged the existence of 18,195 websites identified by the ANJL, they did not confirm that these sites had emerged directly as a consequence of the provisional measure.
The AGU also addressed concerns regarding the impact of the ban on free enterprise and legal uncertainty, clarifying that operations within the sector would operate under authorization based on the Ministry of Finance's discretion and could be subjected to future reviews.
