STF calls extraordinary virtual plenary to discuss ban on municipal lotteries

STF calls extraordinary virtual plenary to discuss ban on municipal lotteries

Context and Legality of the Summons

The Federal Supreme Court (STF) called an extraordinary session of the Virtual Plenary to debate the ban on municipal lotteries in Brazil. The call is based on article 21-B, §4, of the STF’s Internal Regulations and article 5-B of Resolution 642/2019, which allow extraordinary sessions to be held in exceptional situations. This measure was taken after Minister Nunes Marques, rapporteur of the Allegation of Non-Compliance with Fundamental Precept (ADPF) 1212, ordered the immediate suspension of municipal lottery operations.

Monocratic Decision and Justifications

Last Wednesday, minister Nunes Marques, rapporteur of ADPF 1212 moved by the Solidariedade party, issued a monocratic decision that suspends lottery operations in municipalities from 17 states. According to the minister, municipalities do not have constitutional competence to operate in the lottery sector, which would justify the suspension of activities. The decision aims to avoid the emptying of federal regulation, the proliferation of unauthorized companies and the competitive imbalance between federated entities.

Minister Nunes Marques argued that the current situation constitutes an ‘unconstitutional metastasis’, since the proliferation of municipal lotteries could compromise the centralized and uniform regulation of the sector, which falls under federal jurisdiction. The decision also imposes a daily fine of R$500,000 for city halls that fail to comply with the order and R$50,000 for agents who disregard the measure.

Impact on Municipalities and Reactions

The STF’s decision directly affects the municipalities that have already implemented their lotteries or that have ongoing bidding processes for the concession of public services to private entities. The immediate suspension of these operations and tenders could have a significant impact on municipal finances, especially for those who already counted on lottery revenue as part of their budget.

Lawyers and attorneys from municipalities affected by the decision have until 11:59 pm this Friday to send oral arguments to the STF. This opportunity allows municipalities to present their arguments and try to reverse or mitigate the effects of the decision. However, the pressure for the decision to be maintained is great, given the argument that the competence to regulate lotteries is exclusively federal.

Extraordinary Session and Expectations

The extraordinary session of the STF Virtual Plenary began at midnight this Friday and will last until 11:59 pm on Saturday. During this period, STF ministers will analyze Nunes Marques’ monocratic decision and decide whether to endorse it or not. The expectation is that the plenary confirm the suspension of municipal lotteriesbut the final decision is still uncertain.

The president of the STF, Minister Edson Fachin, responded to Nunes Marques’ request to convene the extraordinary session, highlighting the importance and urgency of the topic. The plenary decision will have significant implications for the regulation of lotteries in Brazil and could define the direction of the sector in the coming years.

The current situation constitutes an ‘unconstitutional metastasis’, compromising the centralized and uniform regulation of the sector.

Source: www.gamesbras.com



Fonte: Gaming365 – Brasil

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