Conflicting decrees regarding lottery terminals create deadlock in Rio de Janeiro.
The National Association of State and Municipal Lotteries (ANALOME) requested a legal opinion on the conflict between decrees from the state and the city of Rio de Janeiro regarding Video Lottery Terminals (VLTs). The document was prepared by lawyer Paulo Horn and completed this Thursday (17).
The impasse arose after the publication of two decrees with conflicting guidelines in August of this year. State Decree No. 49.804, of August 18, established requirements for the operation of lottery modalities with specific equipment. Municipal Decree No. 56.640, published three days later, prohibited the granting of licenses to establishments that use this same equipment.
The opinion examines the legal nature of the municipal permit required for the operation of lottery services via light rail transit (VLT) within the context of the Union's exclusive competence to legislate on the subject, according to article 22, item XX, of the Federal Constitution and Binding Precedent No. 2 of the Supreme Federal Court (STF).
At the federal level, Laws No. 13.756/2018 and No. 14.790/2023 define guidelines for lottery operations, including requirements for authorization and oversight. The regulation also takes into account the decisions of the Supreme Federal Court in ADPFs 492 and 493.
The State Decree of Rio de Janeiro regulates the use of equipment for the operation of lottery products, such as Video Lottery Terminals, kiosks, and betting terminals. Conversely, the Municipal Decree prohibits the granting of licenses to establishments that use these devices.
Horn, who holds a Master's degree in City Law from UERJ and is a specialist in Gaming and Betting Law, points out that the municipal permit is a technical and binding administrative act, intended to guarantee compliance with local regulations, but it encounters limitations when it attempts to impede activities already authorized by federal and state legislation.
The expert indicates that a total ban on granting permits for light rail systems (LRVs) throughout the municipality of Rio de Janeiro could constitute an overreach of municipal authority, especially considering that the Federal Government has exclusive authority to legislate on consortium and lottery systems.
The opinion also notes that the municipal decree could compromise competition in the sector by making an exception for lottery outlets operated by Caixa Econômica Federal concessionaires, which could affect the understanding established in ADPFs 492 and 493.
The document emphasizes that municipalities can create and regulate their own public services for the operation of lotteries at the local level, as provided for in items I, II and V of article 30 of the Federal Constitution, competing on an equal footing with other federated entities.
Horn recommends that any denials of permits for establishments using light rail vehicles (LRVs) be properly justified, otherwise they may constitute an abuse of power and be subject to legal challenge.
Check out the full opinion of lawyer Paulo Horn.
