Brazil: Finance Ministry disputes Piracicaba’s right to run municipal lottery
The Federal Government argues that only the Union, states and Federal District can operate lotteries.
Key Points
- Piracicaba expects BR75m ($14m) per year from its new municipal lottery
- The Ministry of Finance says municipalities lack legal authority to run lotteries
- The city claims Supreme Court decisions allow local regulation of the activity
A new municipal lottery launched in Piracicaba, São Paulo, has prompted a legal disagreement between the City Hall administration and Brazil’s Ministry of Finance, which claims municipalities are not authorized to operate lotteries or betting services.
The ministry stated that, under Law 14.790/2023, the city doesn’t have the right to explore such activities as they belongs solely to the Union, states and the Federal District. However, Piracicaba officials maintain that their initiative follows Supreme Court decisions, which recognize local governments’ competence to create and manage lotteries as long as they mirror federally approved modalities.
The city’s decree authorizes several formats, including sports betting, numerical draws, instant lotteries and fixed-odds games.
Operations may be granted to private operators through public tender, with requirements for prior experience in managing lottery systems.
Good to know: A ruling in another Brazilian state upheld a state lottery’s right to operate betting terminals
Piracicaba projects annual revenue of BR75m to be used for public services such as health, safety and social assistance. Unclaimed prizes will also revert to municipal funds after 90 days.
The decree also includes responsible gaming measures, such as advertising limits, age restrictions, self-exclusion options and education campaigns about gambling addiction.
The dispute highlights ongoing uncertainty around municipal autonomy in Brazil’s regulated market as more cities explore state lottery operations to boost revenue.
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