Supreme Federal Court suspends Brazil municipal lotteries/sports
Minister Nunes Marques of the Supreme Federal Court (STF) ordered on Wednesday (3) the immediate suspension of all laws, decrees, and authorizations issued by Brazilian municipalities that have created or regulated lotteries and sports betting in their territories. The measure also applies to operations already in place, which must be immediately halted.
The decision was made within the framework of the Arguição de Descumprimento de Preceito Fundamental (ADPF) 1212, filed by the Solidariedade party, which denounced the proliferation of municipal lotteries and questioned their constitutionality.
Foundations of the ruling: exclusive competence of the Union
According to the minister, the current federal legislation, particularly Law 13.756/2018, which regulates fixed-odds betting, establishes that the oversight and organization of the sector is a responsibility reserved for the federal government due to its national character.
The regulation authorizes the operation of lotteries only by the states and the Federal District, always within the parameters set by federal legislation. In this regard, Nunes Marques pointed out that municipalities do not have legislative competence to create or manage lotteries, since these activities are not considered services directly linked to local interest.
The minister also warned that the disorderly expansion of municipal initiatives causes a “draining” of the federal Executive’s control capacity, hinders regulatory uniformity, and creates risks for consumers, especially in areas such as advertising, fraud prevention, and health protection.
Fines and sanctions for non-compliance
The STF order establishes severe penalties for those who disregard the suspension:
- Daily fine of R$ 500,000 for municipalities and companies that maintain operations or accreditation procedures.
- Fine of R$ 50,000 applied directly to mayors and company executives who continue to operate lotteries or sports betting in their jurisdictions.
Next steps: urgent review by the STF Plenary
Nunes Marques requested the Presidency of the Supreme Court to have the precautionary measure urgently analyzed by the Plenary in an extraordinary session. The president of the STF, Edson Fachin, granted the request and called a virtual session for December 5 and 6, in which the ministers must decide whether to confirm the suspension or not.
The resolution marks a decisive point in the debate on the expansion of municipal lotteries and reaffirms the central role of the Union in the regulation and oversight of the gaming and betting sector in Brazil.
Tags: Brasil, Brazil betting regulation, Brazil municipal licenses, Brazil municipal lotteries