Zona de Azar Brazil – Brazil: Rio de Janeiro and Six Other States Challenge Federal Lottery Law in the STF

Brazil.- 08th May 2024 www.zonadeazar.com The State of Rio de Janeiro, together with six other states and the Federal District, filed a Direct Action of Unconstitutionality (ADI) with the Supreme Federal Court (STF), seeking an injunction to suspend two paragraphs of the federal law that regulates the exploitation of lotteries by federal entities.

In the action filed with the STF last week, and signed by Governor Claudio Castro and the State Attorney General, Renan Miguel Saad, the states and the Federal District argue that by prohibiting the same economic group or legal entity from obtaining a concession to operate lottery services in more than one state and the Federal District, and by banning the advertising of public service in a territory other than where the service is actually provided, paragraphs 2 and 4 of Article 35-A of Federal Law No. 13.756, 2018, contravene several articles of the Federal Constitution.

According to the action filed by the states and the Federal District, paragraphs 2 and 4 of Article 35-A violate principles of the Constitution, including the federal pact and the fundamental goal of reducing regional inequality; the principle of equality and the prohibition of creating differences between Brazilians or preferences among them; the competence of the states to operate state public services; equal conditions for all competitors in the public bidding process, requiring only the technical and economic qualifications necessary to ensure the fulfillment of obligations; the principles of free competition and consumer protection; and the possibility of delegating the service to private enterprise.

The Direct Action of Unconstitutionality is signed by the States of São Paulo, Minas Gerais, Piauí, Paraná, Acre, Mato Grosso do Sul, Rio de Janeiro, and the Federal District.

Edited by: @MaiaDigital www.zonadeazar.com