It is necessary to be clear: there is no constitutional basis that authorizes municipalities to regulate or operate lotteries or betting. The Federal Constitution reserves the power to legislate on consortium and lottery systems to the Union, while recognizing the right to operate lotteries for states and the Federal District.
The Supreme Federal Court solidified this understanding by stating that the Union does not have an exclusive monopoly on operation, but limited legitimacy to the States and the Federal District, without extending it to municipalities. In other words, there is a lack of municipal jurisdiction.
Ignoring this federal framework is not a technical detail; it opens the door to legal uncertainty. Fragmenting regulation across thousands of local entities would lead to overlapping rules, difficulties in oversight, loss of market credibility, and systemic risk for public policies financed by lottery revenues.
It's also important to separate qualified debate from legal marketing. "Innovative" notices and models that encroach on territorial boundaries or jurisdictions have been rejected when subjected to judicial review. The cost of the experiment falls on those who sign them. And the mayor bears the risk.
The risk isn't just political. It's legal and financial. Mayors who enter into contracts, concessions, or accreditations outside their jurisdiction may face civil, administrative, and even criminal proceedings, in addition to facing disallowances from oversight agencies, nullification of acts, revenue freezes, and personal liability.
The message, therefore, is simple and responsible: lotteries are a matter for the Union, the States, and the Federal District. Turning this into a local platform or a short-term opportunity is a game of public resources, institutional integrity, and legal certainty. The safe path for municipalities is to cooperate with the competent state entity, strengthen oversight, and focus on policies that truly apply to the municipal sphere.
Rafael Halila Neves
Technical/Legal Director at Lottopar. Specialist in Public Law and Strategic Legal Management, with experience in contracts, compliance, and service regulation.
