The Office of the Attorney General (AGU) argues that the authority to legislate on consortium systems and lotteries is an exclusive power of the Union, as established in Article 22, section XX, of the Federal Constitution.
This interpretation has been reinforced by precedents from the Federal Supreme Court (STF), such as in ADPFs 492 and 493 and ADI 4986, which recognized the possibility of material exploitation of lotteries by States and the Federal District, but not by municipalities.
The AGU emphasizes that the States’ ability to operate lotteries stems from the residual authority provided under Article 25, §1 of the Constitution — a prerogative that does not automatically extend to municipalities.
The AGU warns of the risks associated with the proliferation of municipal lotteries, especially in the digital environment. It cites the example of the municipality of Bodó, in the state of Rio Grande do Norte, which, despite having only 2,363 inhabitants, accredited 38 companies to operate virtual lottery services — equivalent to one company for every 62 residents.
The AGU highlights that the complexity involved in the regulation of sweepstakes and betting activities requires a more comprehensive oversight and control framework, which is not feasible at the municipal level.
The Ministry of Finance has also taken a stance against municipal lotteries, stating that current legislation and case law do not support local laws that establish such systems.
According to the Ministry, only the Union, the States, and the Federal District are authorized to operate or grant lottery services, as established in Law No. 13.756/2018 and Law No. 14.790/2023. The Ministry argues that the creation of municipal lotteries violates the federal pact and jeopardizes the collection and distribution of public revenues.
The political party Solidariedade has filed ADPF 1212 with the Supreme Court, requesting the suspension of all municipal laws and decrees that establish lottery or betting systems until the STF rules on their constitutionality.
The party claims that these recent local laws violate the federal legal order and create a chaotic situation that hampers tax collection and revenue distribution. The petition also points out that many of these municipal lotteries allow for online betting, reaching users beyond municipal boundaries — a potential legal irregularity.
The AGU’s opinion reinforces the view that the creation and regulation of lotteries fall under the Union’s exclusive legislative competence, with operational exploitation allowed only for States and the Federal District.
The proliferation of municipal lotteries, especially in digital formats, poses significant risks to regulatory oversight, public revenue collection, and consumer protection. The matter is now pending judgment by the STF, which will decide on the constitutionality of municipal laws that establish lottery operations.
Source: GMB
