Lawsuit Challenges Lottery Regulations in Brazil

In the lawsuit, filed with the STF last week and signed by Governor Claudio Castro and 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 prohibiting advertising for the public service from being broadcast in the territory of an entity other than the one where the service is actually provided, paragraphs 2 and 4 of article 35-A of Federal Law 13. 756 of 2018 contravene several articles of the Federal Constitution.

According to the lawsuit filed by the states and the Federal District, paragraphs 2 and 4 of article 35-A violate precepts of the Constitution, including: the federative pact and the fundamental objective of reducing regional inequality; the principle of equality and the prohibition of creating differences between Brazilians or preferences between them; the competence of the states to exploit state public services; equal conditions for all competitors in the public bidding process, requiring only the technical and economic qualifications indispensable to guarantee the fulfilment of obligations; the principles of free competition and consumer protection, and the possibility of delegating the service to private initiative.

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