(AsiaGameHub) –   Edson Fachin, Chief Justice of Brazil’s Supreme Court (STF), has removed Extraordinary Appeal No. 966,177 from the court docket; the case was scheduled to be heard this Thursday to rule on whether the criminalisation of gambling, as set out in the 1941 Criminal Offences Act, aligns with the 1988 Constitution.

The dispute originated in the state of Rio Grande do Sul, where the Public Prosecutor’s Office is challenging a ruling from the Appeals Panel of the state’s Special Criminal Courts. The panel ruled that the 1941 Act was not integrated into the 1988 Federal Constitution, and that operating gambling is not a crime.

While the Supreme Court’s heavy caseload was cited as a reason for pulling the matter from the trial calendar, other factors also contributed to the postponement.

The Supreme Court has faced widespread criticism from the media, the public, and some members of the political establishment. Addressing such a controversial topic now could further harm the court’s already tarnished reputation, and this is widely believed to have factored into the decision.

Criticism of the sports betting and online gaming sectors, especially from President Lula, must also have weighed on Edson Fachin’s decision to wait for a more opportune moment to open the issue for discussion.

Potential favourable ruling on gambling

The prevailing view among lawyers closely tracking the General Repercussion case proceedings at the Supreme Court is that the justices have already concluded that the Federal Constitution does not enshrine the criminalisation of gambling in Brazil.

By postponing the ruling, the Supreme Court avoids taking a public stance on the issue, as it is understood that gambling will be legalised in any case, pending only the approval of operating legislation and general regulations.

The core question at hand is the validity of Article 50 of the Criminal Offences Act, which punishes anyone who sets up or runs gambling in a public place or a place open to the public with three months to one year of imprisonment. If the Supreme Court upholds the ruling of Rio Grande do Sul’s Appeals Panel of the Special Criminal Courts, gambling will no longer be classified as a criminal offence.

Therefore, there will be no legislation banning gambling in Brazil, as the activity will no longer be prohibited, but will instead remain unregulated. As a result, the government will need to regulate the land-based gambling sector, and it will fall to the National Congress to approve formal legislation for the activity.

Luiz Fux, the Justice presiding over the appeal, noted that the issue is controversial and involves constitutional matters of economic, political, social, and legal significance, extending beyond the individual interests of the case.

“The issue submitted to this Federal Court for consideration is eminently constitutional, since the lower court rejected the criminal nature of gambling based on constitutional principles for free enterprise and fundamental freedoms,” stated Fux, who acknowledged back in 2016 that the matter should be discussed under the General Repercussion doctrine.