According to the text, states and municipalities that already operate lotteries will need to adapt their regulations to national guidelines as soon as the law comes into effect, ensuring greater uniformity and legal certainty throughout Brazil.
The bill states that lottery operations may be carried out directly by the public entity or indirectly through delegation to private companies via bidding processes, concessions, accreditation, or public-private partnerships. This delegation will be strictly non-transferable, prohibiting subdelegation, and will always be accompanied by continuous oversight by internal and external control agencies, in addition to audit courts.
Although operations may occur only within the geographic limits of the state or municipality granting the license, consumers will be free to choose where to place their bets.
To receive the delegation, interested companies must prove they have headquarters in Brazil, sufficient share capital for the operation, integrity of partners and executives, tax and labor compliance, and secure, auditable technological infrastructure. They must also demonstrate the absence of conflicts with sports entities, adherence to sports integrity organizations when offering sports-related bets, and the capacity to provide customer service.
Public notices must detail technical parameters, governance requirements, license payments, social obligations, contractual terms, renewal conditions, and applicable penalties.
The bill requires all lottery operators, public or private, to maintain a set of mandatory corporate policies, including integrity programs, anti-corruption policies, anti–money laundering practices, player protection measures, a Portuguese-language ombudsman, transparency rules, and responsible advertising practices. Operators must also maintain headquarters or branches in the state or municipality where they operate, reinforcing local presence and enabling effective oversight.
Lottery advisor
One of the bill’s most significant innovations is the creation of the “lottery advisor,” a company authorized to intermediate bets for state and municipal lotteries (but never fixed-odds bets, which fall under Law 14,790/23). These advisors may collect betting orders, purchase official tickets, store and verify receipts, transfer prize amounts to bettors, and operate aggregator platforms or physical distribution networks.
Although they perform relevant functions, these intermediaries are not to be confused with lottery operators: final responsibility remains with the public entity and the authorized operator. To operate, the advisor must be a business company headquartered in Brazil and must comply with governance, compliance, and integrity rules, as well as prohibitions preventing participation by individuals convicted of serious crimes or public agents involved in sector regulation.
Player protection
The bill dedicates an entire chapter to player protection, defining bettors as holders of fundamental rights. These include guarantees of clear information on rules, risks, and probabilities; protection from abusive or misleading practices; security in the processing of personal data in accordance with the LGPD; accessible and efficient customer service; and tools to prevent compulsive gambling.
Participation by minors under 18, the offering of credit or bonuses to stimulate betting, advertising directed at children and adolescents, and ads suggesting that gambling is a source of income or a financial solution are all prohibited.
Additionally, operators must offer self-limitation tools, alerts about compulsive behavior, self-exclusion mechanisms, educational materials, and support for at-risk players. Bettors will also have the right to full access to their betting and transaction history.
Integrity
Integrity of draws and technological security are central to the proposal. The bill requires all betting systems to be auditable and preferably use technologies such as blockchain to ensure complete traceability. Operators must grant continuous and secure system access to oversight bodies.
Oversight responsibilities lie with the public entity that owns the service, audit courts, and the Public Prosecutor’s Office, and include contractual, financial, accounting, integrity, and consumer rights verification.
Revenue allocation
Regarding revenue, the bill establishes that net lottery revenue—defined as total revenue minus prizes, taxes, operating costs, and operator remuneration—must be allocated exclusively to public-interest purposes.
Priority areas include education, health, social assistance, sports, public security, culture, tourism, entrepreneurship, innovation, technology, and infrastructure. Each state or municipality must create a Special Lottery Management and Guarantee Fund, financed with 0.05% of gross revenue, responsible for managing and ensuring the proper allocation of resources.
Unclaimed prizes after 90 days will be automatically split between education and civil defense funds. Additionally, federal entities must publish quarterly reports on revenue, prizes, budget execution, and technical assessments, which must be made available through transparency portals.
Payment methods
The bill also regulates, for the first time, the payment methods used in state and municipal lottery operations. These methods will require specific accreditation by the public entity, must be integrated with Pix, ensure full transaction traceability, and allow the licensing authority continuous access to accounts used for fund movement.
Payment institutions may be responsible for tax collection, anti–money laundering measures, transaction monitoring, and maintaining operational integrity.
The law creates a prudential segmentation, classifying financial and payment institutions according to their size and international activity, imposing proportional obligations regarding governance, auditing, minimum capital, technological standards, and information reporting. Each category—large, significant, medium, or small—will have specific requirements related to security and stability.
Infractions
The sanctions regime described in the bill is robust. For lottery operators, infractions include operating without authorization, accepting unauthorized bets, violating integrity standards, running irregular advertising, allowing participation by prohibited individuals, or manipulating results.
Possible penalties include warnings, revenue-based fines, suspension of activities for up to 180 days, revocation of authorization, prohibition from operating in the sector for up to 10 years, and disqualification of managers for up to 20 years.
If a bettor is proven to have committed fraud or participated in result manipulation, the operator may require the return of the prize in double. For financial and payment institutions, the bill prohibits any relationship with unauthorized operators, including opening accounts, providing technology, or processing transactions for illegal lotteries.
Penalties range from heavy fines to service suspension, operational restrictions, and revocation of authorization. Internet providers, platforms, and hosting services will be required to block access to unauthorized lottery websites when notified and must maintain permanent communication channels with the regulator.
By combining governance, security, technology, fiscal responsibility, and consumer protection guidelines, the Legal Framework for State and Municipal Lotteries presents itself as the most comprehensive regulatory structure ever proposed for the subnational sector.
The bill seeks to modernize and standardize practices nationwide, strengthen operational integrity, expand legal certainty for investors and operators, and ensure that collected resources are directed transparently and efficiently toward essential public policies.
Source: GMB
