Brazil moves to establish national legal framework for state and municipal lotteries with new bill PL 5982/2025

Brazil is taking a significant step toward creating a unified regulatory structure for state and municipal lotteries as Congressman Marangoni (UNIÃO/SP) formally introduces bill PL 5982/2025 in the Chamber of Deputies.

The proposal, filed on Wednesday (26), aims to define how subnational lotteries should be operated, supervised and audited across the country. If approved, the legislation would establish a Legal Framework for State and Municipal Lotteries, standardizing rules for licensing, concession models, oversight mechanisms and revenue allocation.

The bill seeks to address longstanding regulatory gaps that emerged after the 2020 Supreme Court ruling, which confirmed that states and municipalities can operate their own lotteries independently of the federal government. Since then, the sector has expanded rapidly but without consistent national guidelines, leading to fragmented supervision, varying operational models and uneven consumer protection standards.

Under PL 5982/2025, revenues generated from local lottery activities would be allocated following predefined social and public-interest criteria, ensuring transparency and preventing misuse of funds. The measure also aims to strengthen compliance requirements to curb irregularities and improve the integrity of lottery operations at the subnational level.

Lawmakers and industry observers note that the bill represents an important milestone in bringing greater order, legal clarity and accountability to a sector that continues to grow across Brazil. The proposal is now awaiting deliberation in the Chamber of Deputies’ committees.