The Brazilian Federal Prosecutor's Office (MP-TCU) has requested the Federal Court of Accounts (TCU) to investigate the impacts of online gambling on health and finances.
The Public Prosecutor's Office at the Federal Court of Accounts (MPTCU) filed a formal representation this Monday (August 10th), asking the TCU to investigate the impacts of fixed-odds betting, known as bets , on public spending on health, social assistance, and consumer protection.
According to information from Conjur, the investigation requested by the MPTCU (Federal Public Prosecutor's Office of the Court of Accounts) should also cover household debt and income, tax collection and potential tax evasion, prevention of money laundering and combating fraud, as well as the effectiveness of state oversight of betting platforms.
The Deputy Attorney General of the MPTCU (Federal Public Prosecutor's Office of the Court of Accounts), Lucas Furtado, questioned the State's stance regarding the sector's effects. "Given the proven harm and concrete impacts on public health, family budgets, the protection of children and adolescents, social assistance, tax collection, and the prevention of money laundering, it is imperative to question whether the State can continue to permit and, directly or indirectly, encourage the operation of betting sites ," he stated.
Scope of the investigation
According to the MPTCU (Federal Public Prosecutor's Office for the Court of Accounts), the representation addresses the control of potential state omission in exercising administrative powers of authorization, regulation, oversight, and protection of society. The agency points to evidence that existing mechanisms are insufficient to prevent or repair the damage caused by the activity.
Furtado clarified the scope of his request to differentiate it from a constitutional dispute. "I do not intend to convert the Federal Court of Accounts into an abstract constitutional review body, nor am I requesting that the TCU replace the Supreme Federal Court in assessing the constitutional validity of the legislation governing fixed-odds betting," he said.
The deputy attorney general emphasized that the matter falls within the court's scope of action. "It is, therefore, a matter within the scope of external control of the Public Administration, of an accounting, financial, budgetary, operational and patrimonial nature, and not a request for a declaration of unconstitutionality," he stated.
Legal overview of betting
The MPTCU (Brazilian Federal Public Prosecutor's Office) pointed to two ongoing cases in the Supreme Federal Court that shape the legal context of gambling in the country. The first is Extraordinary Appeal 966.177, with recognized general repercussion under Theme 924, which discusses whether the Federal Constitution received article 50 of the Law of Criminal Offenses, which criminalizes the exploitation of games of chance.
Meanwhile, the Brazilian Supreme Court (STF) is judging Direct Actions of Unconstitutionality that question the validity of Law 13.756/2018. This legislation was responsible for removing fixed-odds betting from the general regime prohibiting games of chance.
