Supreme Federal Court (STF) Minister Nunes Marques issued an order on Wednesday suspending the creation and operation of all municipal lotteries in Brazil, including those involving sports betting.
The preliminary injunction, granted in response to an Argument of Non-Compliance with Fundamental Precept (ADPF 1212) filed by the Solidariedade party, halts the validity of all municipal laws, decrees, public notices, and contracts related to the activity. The decision requires municipalities to immediately stop ongoing lottery operations and prohibits any new initiatives in the sector.
According to the minister, municipalities lack constitutional authority to operate lotteries, which he described as activities of national or regional relevance under federal and state jurisdiction. He also requested an extraordinary virtual plenary session to review and potentially ratify his monocratic ruling.
Marques pointed to federal legislation to justify the suspension. Law 14,790, which amended Law 13,756/2018, centralized regulatory and licensing powers for sports betting and online gaming within the Ministry of Finance’s Secretariat of Prizes and Betting (SPA/MF). The law also created Article 35-A, formally authorizing only states and the Federal District—not municipalities—to operate lottery services.
The ADPF specifically cited Belo Horizonte and 21 other cities with municipal lottery regulations. However, the minister noted that the expansion is far broader, listing an additional 70 municipalities that had adopted similar measures. More than 80 cities have enacted regulations in the past three years, including 55 in 2025 alone.
He described the rapid spread of municipal lottery initiatives across 17 states as an “unconstitutional metastasis,” warning that it threatens to destabilize federal oversight, encourage unauthorized operators, and create competitive distortions among federative entities.
The ruling also sets fines for noncompliance: R$ 500,000 (US$94,000) per day for municipalities and companies that continue operating, and R$ 50,000 (US$9,400) per day for mayors and executives who ignore the order.
The Ministry of Finance’s SPA, the National Telecommunications Agency (Anatel), and the National Association of Games and Lotteries (ANJL) were notified to take measures reinforcing the blocking of illegal betting platforms.
Original article: https://www.yogonet.com/international/news/2025/12/05/116638-brazil-federal-supreme-court-freezes-municipal-lottery-concessions-and-related-services
