Supreme Court decides on Thursday if Brazil decriminalizes gaming

Extraordinary Appeal N° 966,177 was filed by the Public Prosecutor's Office against the decision of the Judicial Branch (Turma Recursais) of Rio Grande do Sul that does not recognize the validity of the law that considers a criminal violation the operation of games of chance with reference to the inapplicability of Article 50 DL 3.688 / 41, facing the confrontation (or syntony, in case of origin of the RE) with the Constitution of the Federative Republic of Brazil.

The SFC will decide whether the prosecutor's appeal is well-founded or not, and may make the exploitation of games no longer a criminal offense.

Roberto Carvalho Brasil Fernandes, partner of the Brazil Fernandes office and lawyer of ABLE - Brazilian Association of State Lotteries- explains that the appeal has already been processed and appreciated the recognition of the existence of General Repercussion, which means that the decision will take effect in all the country. He also says that the result of dismissal of the resource is important for the gaming sector, but another step will still be needed so that betting activities can begin in the country.

"If judged to be well founded, gaming remains a criminal offense, just as it is today. If it is rejected, the practice of gaming ceases to be a criminal offense. However, it does not allow gaming houses to open the next day, as a number of regulatory requirements will still be needed. It's like you want to sell meat. Selling is not illegal, but, you need to have a license from the city hall, health surveillance license, a series of documents," he explains.

According to Brasil Fernandes, legally, regardless of the decision of the SFC, there will be no interference of the judiciary in bills 442/91, in the Chamber, and 186/2014, which runs in the Senate, both dealing with the legalization of gaming. However, it is important to see the effect that the repercussion of the news of the decision of the SFC in the media can cause.

"Whatever the decision of the SFC, it does not interfere in any way with the bills that are being processed at the Congress. It does not change the legislative process. But depending on media repercussions it can help speed up or delay the process according to how the outcome is reported. There is no control from the media point of view."

Projecting that the decision of the SFC is for the dismissal of the appeal and that gaming is no longer a criminal offense, the expert says that Brazilian businessmen may think about starting their business, but again emphasized the issue of regulation.

"I think that for international investors nothing changes. But local businessmen will need only regulation. And the only one that can regulate draws is the Union (federal government), so only the Union can make this regulation. And for the bingos to work it will be necessary to establish a normative framework and regulate."

Source: GMB Exclusive