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Brazil’s Attorney General Moves to Invalidate Municipal Lotteries Nationwide

Brazil’s Attorney General, Paulo Gonet Branco, has submitted a legal opinion to the Federal Supreme Court (STF) arguing that municipal lotteries are unconstitutional — a move that could reshape the country’s gambling regulatory landscape.

The opinion was filed as part of ADPF 1212, a constitutional case initiated by the political party Solidariedade. The petition asks the Court to determine whether municipalities have the constitutional authority to create and operate lottery services, or whether that power rests exclusively with the states and the federal government.

Gonet Branco’s position is clear: the spread of locally created lotteries represents a “fragmentation of national gambling policy”, undermining uniform oversight and fiscal control. According to his submission, lotteries are economic activities that go beyond local interests, requiring centralized regulation to ensure transparency and accountability.

The Attorney General’s view aligns with that of the Advocacy-General of the Union (AGU), which also supports restricting lottery authorization to state and federal levels.

One of the examples cited in the case is Bodó, a small municipality in Rio Grande do Norte that enacted its own lottery laws, allowing local operators to issue sweepstakes and instant games. The example was used to illustrate the “uncontrolled proliferation” of municipal gambling initiatives in recent years.

The case has been assigned to Justice Nunes Marques, who has requested formal responses from the AGU and the PGR (Office of the Attorney General) within ten days. A final ruling is expected to clarify whether municipalities will lose the authority to legislate or operate gambling activities entirely.

If the STF upholds Gonet Branco’s interpretation, the decision could lead to the closure or restructuring of dozens of municipal lotteries, concentrating gambling regulation — and its fiscal benefits — at the state and federal levels.

Published October 16, 2025 by Brian Oiriga
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