Zona de Azar Brasil – ANJL: Declaring the Betting Law Unconstitutional Would Boost the Illegal Market.
Brazil – November 14, 2024, www.zonadeazar.com. The National Association of Games and Lotteries (ANJL) reinforced that a potential declaration of unconstitutionality of the Betting Law would guarantee the continued operation of the parallel market in Brazil.
The public hearing to debate the impacts of online betting in the country took place yesterday, November 11, at the Supreme Federal Court (STF). Minister Luiz Fux called the session as part of the Direct Action of Unconstitutionality (ADI) 7721, in which the National Confederation of Commerce of Goods, Services, and Tourism (CNC) requested the STF to declare the Law No. 14,790/2023 unconstitutional.
According to Fux, the purpose of the public hearing is to provide “the maximum interdisciplinary information possible,” allowing the court to hear expert opinions on the matter.
“The Federal Supreme Court was called to verify if this law is in accordance with constitutional values. So, for this reason, we are obliged by the Constitution to give an opinion on whether this law is constitutional or unconstitutional,” said the minister.
“If the Direct Action of Unconstitutionality (ADI) is accepted, it will end up, contrary to its own goal, doing what it seeks to prohibit or prevent, which is encouraging pathological gambling and illegal gambling,” said Pietro Cardia Lorenzoni, lawyer and legal director of ANJL.
According to Lorenzoni, data from ANJL indicate that, by 2025, Brazil’s regulated betting market will generate approximately 60,000 jobs and raise about R$ 4 billion from federal grants, in addition to traditional corporate taxes – almost 37% of the company’s revenue.
The lawyer also added that the growth of online betting in the country is directly related to the Brazilian market, not the Betting Law, sanctioned by President Luiz Inácio Lula da Silva at the end of last year.
The main factors that helped the sector grow in Brazil in recent years were the increased demand between 2019 and 2024, the size of the population, and the low or nonexistent tax burden, operational costs, and regulatory costs.
“And it is precisely this scenario that has caused the reality we have today, with its harms, which we are experiencing. There are currently four thousand active betting sites. Many with frauds, including crimes against the economy. And this is not the reality of those who seek lawful and regulated gambling,” said Lorenzoni.
ANJL’s legal director also emphasized that the supposed impact of betting on Brazilian family consumption and retail performance has not been confirmed.
“Regarding the argument of family indebtedness and reduced consumption, the Itaú study, as opposed to what the CNC presented, indicates that the impact of betting on retail is insignificant. Betting represents no more than 0.23% of the national GDP,” he pointed out.
Before closing the public hearing, Lorenzoni commented on the possible ban on market advertising, stating that it would be very harmful to the sector and would benefit only companies seeking to operate illegally.
“Advertising is one of the essential ways to distinguish regulated gambling from unregulated gambling,” said the lawyer.
The public hearing is scheduled to continue today, November 12, to hear from other market experts, government officials, and representatives of organized civil society.
Editor: @_fonta www.zonadeazar.com
