Brazil's Attorney General's Office (AGU) has urged the Supreme Federal Court (STF) to dismiss the preliminary injunctions related to the Direct Actions of Unconstitutionality (ADIs) concerning the ban on betting. This request was made as Justice Luiz Fux reviews the case.
The AGU's plea comes in response to a provisional measure issued by President Lula in late September that enforced the betting prohibition. The office highlighted the necessity for the prosecutor general to be heard within 72 hours before Fux makes a ruling on the appeals to reverse this ban.
The AGU's response addresses a lawsuit brought forth by the National Association of Games and Lotteries (ANJL) and the Brazilian Institute for Responsible Gaming (IBJR), both of which seek to challenge the legality of the prohibition. According to the AGU, the existing betting legislation has been revealed to be "extensively flawed," struggling with issues such as the protection of minors and the prevention of money laundering and crime financing. However, it did not acknowledge the precautions taken by the betting sector to mitigate these issues, focusing instead on illegal websites that operate outside of regulations.
In addition to discussing the injunctions, the AGU requested an additional public hearing to revisit discussions from November 2024 regarding the betting ban. The timing of this measure, coming just before Brazil's presidential elections, has raised allegations of it being a politically motivated action. Critics of the ban argue that if it were a matter of substantial importance, it should have been debated more thoroughly, calling into question whether President Lula acted too hastily in enacting the prohibition.
The AGU's requests imply that the betting sector will face ongoing challenges, with potential revenue loss and decreased tax income for the government as a result. The timing of decisions surrounding the issue is particularly critical, as the second round of presidential elections is slated for October 25, featuring President Lula and Liberal Party leader Flávio Bolsonaro.
The AGU also asserted its intent to uphold the provisional ban while preserving operations of authorized companies or extending the transition period by at least six months. The ANJL and IBJR contend that the disruption caused by the ban violates legal certainty, potentially pushing gamblers towards the black market.
The AGU rebutted claims regarding the urgency of the provisional measure's implementation, clarifying that the government's decision was informed by past regulation experiences and the implications for household debt and public health. The AGU underscored that the decrease in revenue anticipated from the ban was taken into account during the decision-making process.
Additionally, the AGU rejected the notion that the ban would push consumers towards illegal betting, noting that in the week following the provisional measure, over 10,000 illicit websites were blocked. It stated that there were efforts to eliminate more than 3,000 illicit online pages and other platforms. However, the AGU did not address the proliferation of new illegal sites created post-enactment, asserting that 18,195 websites identified by the ANJL were not necessarily established due to the new laws.
On the topic of legal enterprise and the uncertainty surrounding the measure, the AGU confirmed that operations adhered to the authorization guidelines established by the Ministry of Finance, asserting that these guidelines remain subject to review as circumstances evolve.
