In Brazil, the Federal Constitution of 1988 divides responsibilities among the Union, States, and Municipalities, clearly outlining what each can or cannot do. This separation is intended to better organize matters and prevent one from interfering with another. "When it comes to lotteries, for example, the constitutional text is quite direct: it is not something that municipalities can create or explore," states Daniel Romanowski, president of Lottopar (State Lottery of Paraná) in this opinion column.
Who can deal with lotteries?
The Constitution states that the Union, i.e., the federal government, has the exclusive right to create rules about "consortium systems and raffles" (this is in Article 22, clause XX). Despite this, in 2020, the Supreme Federal Court (STF) decided that States can also explore lottery services, but must always respect the general norms created by the Union.
And the municipalities? They have a more limited role. They can legislate on matters of local interest and complement state and federal rules, as per Article 30 of the Constitution. But the problem is that lotteries do not fit into this definition of "local interest." It is a subject that involves broader economic and social issues, going beyond the capacity and reach of municipalities.
Why do municipal lotteries not make sense?
Creating a lottery at the municipal level would bring more confusion than solution. First, because there is no constitutional basis. There is no article or law that gives municipalities the right to explore this type of service. Moreover, allowing each city to have its own lottery could complicate control, increase the risk of irregularities, and even divert money that should be used to benefit the population.
Another issue is that lotteries need strong and centralized oversight to ensure they operate honestly. If each municipality could create its own, it would be impossible to maintain this control and ensure that the money was really destined for something useful.
Conclusion
In summary: municipal lotteries are not only unfeasible but also unconstitutional. The Brazilian Constitution is clear: the Union makes the rules, and at most, the States can explore lotteries. Municipalities are not authorized to enter this type of business. So, any attempt to create a municipal lottery can be blocked in court. This is not a matter of opinion, but of law.
Daniel Romanowski
President of Lottopar
