Brazil's Supreme Court (STF) is ruling on cases regarding the Union's exclusive right to operate lotteries.

The Supreme Federal Court (STF) began, in the plenary session this Wednesday (23), the judgment of three actions – Arguments of Non-Compliance with Fundamental Precept (ADPFs) 492 and 493, and Direct Action of Unconstitutionality (ADI) 4986 – which discuss the competence of the Union and the member states for the exploitation of lottery modalities. This Wednesday (23), Minister Gilmar Mendes read the report and, subsequently, two oral arguments were presented. The judgment continues in the session this Thursday (24), starting at 14 pm.

ADPF 492 was filed by the then governor of Rio de Janeiro, Luiz Fernando Pezão, against provisions of Decree-Law 204/1967 concerning the Union's monopoly on operating lotteries. The same rule was challenged by the Brazilian Association of State Lotteries (Able) in ADPF 493. In common, the plaintiffs argue that the decree was not received by the 1988 Federal Constitution because it established the Union's exclusivity in operating lotteries and maintained the static situation of state lotteries, limiting the issuance of tickets and series to the quantity in effect on the date of its promulgation, thus preventing the creation of new state lotteries.

In ADI 4986, the Attorney General's Office (PGR) challenges regulations of the State of Mato Grosso (State Law 8.651/2007 and Decrees 273/2011, 346/2011, 784/2011 and 918/2011) that govern the operation of lottery modalities by the Mato Grosso State Lottery (Lemat). The state legislation stipulates that Lemat will operate, directly or indirectly, the same lottery modalities operated by the Federal Government and that the economic results will be allocated to financing the State Social Assistance Fund and the Sports Development Fund of the State of Mato Grosso.

Concurrent jurisdiction

Representing the government of Rio de Janeiro, state attorney Emerson Barbosa Maciel reiterated that the challenged regulations violate the principles of federalism, non-intervention, and the prohibition of monopolies. He defended the argument that the states have concurrent jurisdiction in the matter. According to him, the Union's competence to legislate on the subject "does not authorize it to reserve for itself the exclusive right to operate the lottery, without the co-participation of the states."

Provision of public service

According to the prosecutor, lotteries are not gambling, but rather a public service, whose revenue has always been linked to funding social security and services for citizens, unlike private activities that aim for profit. He stated that 70% of the resources collected by the Rio de Janeiro State Lottery (Loterj) are used in important social programs, and there is information indicating that other states have used these resources in the fight against the pandemic.

Federative pact

The State of Minas Gerais, admitted as an interested third party in ADPF 493, was represented by prosecutor Mario Eduardo Nepomuceno Júnior. He stated that the powers not prohibited by the Federal Constitution (article 25, paragraph 1) are reserved to the member states and assessed that the federal pact is a decisive element for the non-reception of the questioned norms. ( STF News )