Brazil’s Supreme Court deals major blow to municipal lotteries
Brazilian Supreme Court (STF) Justice Kassio Nunes Marques has suspended all municipal laws authorizing lottery and sports betting. The judge also suspended ongoing bidding processes and the operation of already licensed services related to betting via municipal lotteries.
Brazilian Supreme Court (STF) Justice Kassio Nunes Marques has suspended all municipal laws authorizing lottery and sports betting. The judge also suspended ongoing bidding processes and the operation of already licensed services related to betting via municipal lotteries.
The decision also summoned the Secretariat of Prizes and Bets of the Ministry of Finance, Anatel (National Telecommunications Agency), and the National Association of Games and Lotteries to take the appropriate measures and actions.
The decision, of a preliminary nature, applies to all of the more than 5,500 municipalities in the country and will be submitted to the full Court. Municipalities and companies that disregard the order will be subject to a daily fine of R$ 500,000 while mayors and presidents of accredited companies that maintain the operation of lottery activities will face a fine of R$ 50,000.
The judge determined that the establishment of these lotteries infringes upon the separation of powers outlined in the Constitution.
In his ruling, the judge noted that, in 2025 alone, 55 municipalities passed laws to create their own lotteries. Since the federal government regulated fixed-odds betting in December 2023, around 80 Brazilian municipalities have approved laws to create their own lotteries. He warned that this trend could lead to “regulatory chaos” and disrupt the federal system. He also stressed that managing fixed-odds betting, lotteries, and online gaming necessitates “centralized regulation, strong oversight, and robust monitoring,” which becomes challenging when municipalities individually offer these services in a fragmented manner.
In March 2025 the Solidariedade party a centre-left party in Brazil filed a lawsuit in the STF questioning the operation of municipal lottery services. The Solidarity party argues that municipalities have no jurisdiction to legislate on lotteries and betting, as this would violate the interests of the federal government.
