City of Cuiabá revokes lottery plans in face of Brazil’s Supreme Court decision
City of Cuiabá revokes lottery plans in face of Brazil’s Supreme Court decision
The mayor of the city of Cuiabá, Abilio Brunini, has sent a bill to the Cuiabá City Council that revokes the legislation responsible for creating the public lottery service in the municipality. The proposal is being processed under urgency in the Legislature.
The project fully revokes Law No. 6,872, of October 2022, which authorized the establishment and operation of the municipal lottery in the city – capital of the state of Mato Grosso .
According to city officials, the initiative seeks to adapt the local legal framework to the understanding currently adopted by the Supreme Federal Court (STF).
City officials argue that maintaining the municipal lottery could expose Cuiabá to legal and financial risks, including the possibility of daily fines, should contracts signed based on the repealed legislation remain in effect.
The text emphasizes that the Supreme Court’s decision has immediate effect and binding character, making the continuation of the service legally unfeasible.
Furthermore, technical opinions issued by the Cuiabá Regula agency and the Municipal Attorney General’s Office pointed to the structural infeasibility of a municipal lottery system. According to the Executive branch, overseeing the activity would require a highly specialized structure, which would exceed the municipality’s administrative capacity.The project also states that expanding access to gambling, without adequate regulatory control, can contribute to an increase in gambling addiction.
Other city councils in Brazil could well follow suit. In December Brazilian STF Justice Kassio Nunes Marques 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 STF’s 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.
However the São Paulo City Council has appealed the decision arguing that the law has been in effect since July 2024 and is already having regular impact in city government. Stopping it right away could disrupt public services, since lottery operations are part of those services city officials argue.
