Brazil's Attorney General's Office (AGU) has argued before the Supreme Federal Court (STF) that restrictions preventing beneficiaries of social programs from accessing online betting should not apply to federal lotteries operated by Caixa.
The position was presented in Direct Actions of Unconstitutionality (ADIs) analysing Brazil's fixed-odds betting regulatory framework, under Justice Luiz Fux.
STF ordered the Federal Government to adopt immediate measures to prevent beneficiaries of Bolsa Família, the biggest social program in the country, and the Continuous Cash Benefit from placing bets on private fixed-odds platforms.
In its submission to the Court, the AGU maintained that the ruling applies exclusively to private betting operators and should not extend to federal lotteries.
According to the Solicitor General's Office, the two activities differ substantially in nature and are governed by distinct legal regimes.
The AGU argued that lotteries operated by Caixa are characterized as "episodic betting activities, carried out through draws on pre-established dates, which generate low engagement, as there is no continuous incentive."
On this basis, the office said federal lotteries should not fall under the scope of the restrictions imposed by the STF on private betting companies.
To comply with the STF's precautionary ruling, the Ministry of Finance issued regulations requiring private betting operators to block the registration and participation of beneficiaries of social programmes on their platforms.
AGU's argument seeks to draw a clear regulatory boundary between private online betting platforms and state-operated lotteries.
AGU also reinforced Caixa's position as a federal public entity operating under a separate legal mandate.
Caixa had plans to launch its own online betting platform, but it was halted by the Federal Government
