Brazil's Attorney General's Office argues that municipalities cannot create lotteries and requests that the Supreme Court uphold the case.
The Attorney General of the Republic, Paulo Gonet Branco, expressed his opinion this Friday (10) in favor of the request in the Argument of Non-Compliance with Fundamental Precept (ADPF) 1212 in the Supreme Federal Court. The action, filed by the Solidarity party, questions the constitutional competence of municipalities to create and operate lottery services, in a case that directly affects municipal autonomy and the regulation of gambling in hundreds of Brazilian cities.
The ADPF (Arguição de Descumprimento de Preceito Fundamental - Claim of Non-Compliance with a Fundamental Precept), reported by Minister Nunes Marques, challenges regulations from 12 Brazilian municipalities that established their own lottery services, including capitals such as São Paulo, Belo Horizonte, and Porto Alegre.
Constitutional competence under debate
The core of the legal discussion revolves around the interpretation of who has the authority to operate lottery services in Brazil. In previous rulings, the Supreme Federal Court established that states and the Federal District have the material authority to operate such services, but this position does not automatically extend to municipalities.
The Attorney General's Office (PGR) warns of what it called the "unregulated proliferation of municipal lotteries" throughout the country. The opinion highlights that the constitutional issue requires a broad solution in federal terms, justifying analysis by the Supreme Federal Court (STF).
"The relaxation of territoriality criteria weakens the oversight and control of lottery activity, with potential harm, among other things, to the federal pact," states the Attorney General's document.
The Attorney General's Office also expressed its support for the request. The Attorney General's Office argued that the operation of lotteries cannot be understood as a matter of "local interest," highlighting the complexity of the issue.
The Solidarity party, which filed the lawsuit, alleges that there is an "unregulated proliferation of municipal lotteries" without proper oversight from the Ministry of Finance. One of the central arguments is that the Supreme Federal Court, while ruling that states can operate lottery services within their territories, did not extend this authorization to municipalities.
As an example of the situation, the party cites the case of Bodó (RN), where 38 companies were accredited to operate "consortium and lottery systems" through the municipal lottery. The municipality has, on average, one accredited company for every 62 residents.
The lawsuit argues that many of the challenged municipal laws allow for online betting, demonstrating that this is not a matter for local exploitation.
The municipal authorities questioned argued that they were unaware of the allegations. Some reported that some of the lotteries authorized by municipal laws had not even been implemented in their territories.
Decision of the reporting minister
It is important to highlight that Minister Nunes Marques, rapporteur of ADPF 1212, did not grant the preliminary injunction against municipal autonomy for the operation of public lottery services. In his decision, published on the STF website, the minister emphasized the relevance of the matter and its impact on social order and legal certainty.
"Given the relevance of the matter and its impact on social order and legal security, it is necessary to obtain statements from the authorities involved, with a view to a definitive judgment on the controversy, without prejudice to considering the precautionary request at any time, given the risk and urgency indicated in the initial filing," Nunes Marques decided.
The minister initiated the procedure outlined in Article 6 of Law No. 9.882/1999, ordering that information be gathered through a statement from the Attorney General's Office and an opinion from the Prosecutor General's Office, within a period of ten days.
In the lawsuit, the Solidarity party specifically cites the legislation of several municipalities, including São Vicente/SP, Guarulhos/SP, Campinas/SP, São Paulo/SP, Belo Horizonte/MG, Anápolis/GO, Foz do Iguaçu/PR, Pelotas/RS, Bodó/RN, Porto Alegre/RS, Caldas Novas/GO, Poá/SP, and Miguel Pereira/RJ, among others that have already created or are deliberating on the creation of local lotteries.
The Supreme Court's decision on this case could establish an important precedent regarding the limits of municipal autonomy and the interpretation of the concept of "local interest" as provided for in the Federal Constitution, with impacts on the Brazilian federal organization and the regulation of lottery activities.
Statement from the Attorney General's Office in ADPF 1212 – Municipal Lotteries
