Brazilian Supreme Federal Court halts vote on provisional suspension of Bets Law restrictions
Brazil’s top court is assessing whether two contested rules in the country’s new betting legislation should remain suspended.
Key Points
- The Supreme Court is reviewing a temporary suspension of two restrictions in the Bets Law
- Governors argue the rules harm competition and favor wealthier states
The Brazilian Supreme Federal Court (STF) has paused its vote on whether to uphold a preliminary injunction that suspended parts of the country’s new Bets Law, as Minister Cármen Lúcia requested more time to review the case.
The two suspended rules include a ban on granting lottery concessions to the same economic group in more than one state, and a restriction on advertising state lotteries to residents outside their own territories.
The suspension was initially granted in October by Minister Luiz Fux, following a request from governors representing several states in Brazil. They argued the rules violate fair competition and limit the ability of state lotteries to attract users through broader advertising.
Fux maintained his position during the current session, stating the bans were not constitutionally justified and could restrict participation in public tenders, ultimately harming smaller states. He was joined by Minister Flávio Dino, who agreed with the suspension but noted the potential risks of market dominance by a single group.
Good to know: The Bets Law was signed into effect in December 2023 to regulate both traditional lottery operations and online fixed-odds betting in Brazil
The case focuses only on traditional lottery modalities such as instant win games and numbered draws, while fixed-odds bets are being assessed in a separate legal challenge.
Despite the STF also analyzing the case’s broader merit, that part of the process has been placed on hold. Up to this point, five ministers have voted in favor of declaring the contested rules unconstitutional.
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