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Insight BRAZIL - UPDATE


If the judgment moves forward and Justices rule in favour of the State of Rio Grande do Sul, this could be the turning point in the legalisation of all forms of games of chance in Brazil that foreign operators have been waiting for decades. There is currently speculation as to whether the Brazilian Congress will move quicker than the STF and approve the Bills of Law currently underway, which aim to legalize all forms of gaming and betting in Brazil prior to the judgment session, which has now been postponed to the second semester.


as well as the Federal District, are either reactivating their own state legislations or moving forward to enact their own legislation to be in a position to exploit state lotteries (which must follow the types of lottery also existing at a federal level).


In the context of the foregoing, since fixed odds sports betting was deemed by the Brazilian legislator as a form of lottery, the above- mentioned decision, in principle, provides an opportunity for licenses for the exploitation of fixed odds sports betting to be granted also at state level. SECAP is well aware of this and will probably try to concentrate licenses being granted to online operators only at the federal level. We will have to wait and see how this develops in the months to come.


P86 WIRE / PULSE / INSIGHT / REPORTS


Another event which could have certainly messed things up further this semester was going to be the judgment session, by the STF, on 7th April 2021, of the claim arising in the State of Rio Grande do Sul.


If indeed the judgment moves forward and Justices rule in favour of the State of Rio Grande do Sul, this could be the turning point in the legalisation of all forms of games of chance in Brazil that all foreign operators have been waiting for decades. Tere is currently speculation as to whether the Brazilian Congress will move quicker than the STF and approve the Bills of Law currently underway at such power which aim to legalise all forms of gaming and betting in Brazil prior to the judgment session, which has now been


postponed to the second semester because the STF President – Luiz Fux – did not want to rule on such a sensitive issue in the midst of the worst phase of the Covid-19 pandemic in Brazil.


What is the significance of the Supreme Court decision to allow states to offer their own lotteries? Do you think that individual states will just start launching sports betting via private operators in their own states?


Te STF decision allowing states to offer their own lotteries is a breakthrough for the sports betting and lottery industries. I was the first Brazilian lawyer to raise the possibility of states offering their own sports betting products. Tis is because the STF decision clearly states that states can offer all forms of lottery that exist at federal level. Since sports betting now exists at federal level, even though it has still not been regulated, in principle, states could either exploit such a product or grant licenses to private operators to do so within their own territories. Tis will certainly create friction with SECAP, especially in respect of online fixed odds sports betting.


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