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Brazil : Court Ruling Pauses Municipal Lotteries

Municipal Lotteries

Highlights 

  • The Federal Supreme Court suspends municipal lotteries in the country 

  • The Solidarity Party has claimed that more than 5,500 municipalities are on their way to launch lotteries before these measures.

Uncertainty prevails over the future of municipal lotteries as they are suspended by the Supreme Court in Brazil, instinctively, after the filing issued by the Solidarity Party. In the lawsuit, they alleged that city-run lotteries have violated betting regulations. 

Minister Nunes Marques, of the Supreme Federal Court, announced on Wednesday the suspension of all municipal laws and decrees governing lotteries and sports betting at a local level. The injunction was permitted in response to the claim of Non-Compliance with a Fundamental Precept (ADPF) by the Solidarity Party. 

According to the minister, municipalities cannot legislate on lotteries. This has led to the systematic failure of the federal government’s oversight of gambling in Brazil.

Marques’ injunction comes with a daily fine of BRL500,000 ($94,065) for municipalities and companies offering betting at the level. Furthermore, a fine of R$50,000 for mayors and presidents of accredited companies continuing their operation of lottery activities.

The ADPF has backed the Attorney General’s Office, opining that municipal lotteries undermine consumer protection and federal oversight. 

The Solidarity Party, in over 5,500 municipalities, was heading to introduce lotteries if this legal step wasn’t taken.

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