Federal deputy puts forward bill to regulate state and municipal lotteries in Brazil
Deputy Fernando Marangoni has introduced Bill No. 5.982/2025 to impose a much clearer regulatory framework between traditional state and municipal lotteries and fixed-odds betting. According to the justification of the bill following the federal regulation of fixed-odds betting under Law No. 14,790/2023, a legal gap emerged regarding subnational lottery initiatives, leading to legal disputes in the Supreme Federal Court (STF).
The bill aims to establish a clear regulatory framework that ensures fixed-odds betting remains separate from state and municipal lotteries. It emphasizes that while fixed-odds betting falls under federal jurisdiction, traditional lotteries can be established and operated by states and municipalities, focusing on public interest and social welfare.
According to the wording of bill: “This explicit separation aims to prevent any normative overlap or conflict of competencies: traditional lotteries will continue to exist as local public services (delegable to private partners via concession or accreditation, as applicable), while sports betting and similar activities will remain under a federal competitive market regime, with centralized authorization and oversight by the Ministry of Finance, through the Secretariat of Betting and Lotteries.”
The proposal creates a complete set of rules to regulate the creation, authorization, operation, supervision, sanctions, governance, technology, prevention of money laundering, and consumer protection within the scope of subnational lotteries, excluding only fixed-odds betting, already regulated by Federal Law No. 14,790/2023. According to the text, states and municipalities that already have lotteries will need to adapt their regulations to the national guidelines as soon as the law comes into effect, ensuring greater uniformity and legal certainty throughout the country.
The project also states that lottery operations may be carried out directly by the public entity or indirectly, through delegation to private companies via bidding, concession, accreditation, or public-private partnership. To receive the concession, the interested company must prove it has its headquarters and administration located in the national territory.
