Municipal lotteries are multiplying across Brazil, and the Supreme Court is judging their constitutionality following a lawsuit filed by the Solidarity party.
The Brazilian Supreme Court is analyzing the legality of municipal lotteries in Brazil, amidst the proliferation of these services in dozens of cities. The issue reached the Supreme Court through the Action for Non-Compliance with Fundamental Precept (ADPF 1212), filed by the Solidarity party, which questions the municipalities' competence to operate this type of activity.
More than 70 Brazilian municipalities have already approved their own legislation to create and operate lottery services, including Balneário Camboriú (SC), where Law 5062 was enacted in July by Mayor Juliana Pavan (PSD). As reported by Diarinho.net, the project awaits regulation and studies to begin operations, even in the face of questions about its constitutionality.
The Brazilian Association of Municipal and State Lotteries argues that the operation of these services is not exclusive to the Federal Government, based on decisions by the Supreme Court itself in 2020. However, previous rulings by the Court have already declared the creation of lotteries by municipalities unconstitutional.
In Bodó, Rio Grande do Norte, the Public Prosecutor's Office managed to freeze R$ 145 million in an investigation against the irregular operation of municipal betting establishments. The prosecution based its action on Supreme Court jurisprudence, such as ADPF 337, which contains rulings indicating that municipalities do not have the authority to operate betting or lottery services.
The Director-General of the Finance Department of Balneário Camboriú, Gilson Bordin, explained the next steps for implementing the service in the municipality: “We will still publish the decree regulating it and then begin contracting the study on how it will be implemented in the municipality, with all the stages and with the jurisprudence and legality.”
While the matter is not definitively decided, Minister Nunes Marques denied an injunction that would suspend municipal lotteries, allowing existing services to continue operating. In Santa Catarina, in addition to Balneário Camboriú, cities such as Itapema, Balneário Piçarras, and Forquilhinha have also approved similar legislation.
The legislation of Balneário Camboriú stipulates that the funds raised from the municipal lottery will be allocated to the Municipal Fund for People with Disabilities, urban mobility, anti-drug policies, and the development of the southern region of the city, representing an additional source of revenue for the municipality.
The municipalities that have implemented these services argue that states and cities have the authority to create and operate public lotteries, as long as they follow general rules established by the federal government, an interpretation that underpins the initiative of Balneário Camboriú and other localities.
