The National Association of Municipal and State Lotteries of Brazil argues that the Supreme Federal Court supports the creation of lotteries by municipalities, while the Ministry of Finance insists that the Constitution does not allow it.
Brazil.- The National Association of Municipal and State Lotteries (ANALOME) has countered the position of the Secretariat of Prizes and Bets of the Ministry of Finance (SPA-MF), which considers the creation of the Municipal Lottery of São Gonçalo (LOTOSG), approved by the city council on February 26, unconstitutional. In an official note, the entity argues that the jurisprudence of the Supreme Federal Court (STF) from 2020 supports the autonomy of municipalities to establish this type of public services.
The LOTOSG project, driven by Mayor Capitão Nelson, aims to generate resources through prediction games, instant lotteries, and online betting, with the goal of funding key sectors such as health, education, security, and culture. According to the City Council, the funds would be allocated to prizes, operational costs, and social investments, following models already implemented in cities like São Paulo, Belo Horizonte, and Belém.
However, the Ministry of Finance maintains that the Federal Constitution and Brazilian legislation only authorize the operation of lotteries at the national level by the Union, and at the regional level by the states and the Federal District, excluding municipalities. “There is no legal support for this proposal,” stated the Ministry in a recent release.
For its part, ANALOME, created in December 2024, argues that the STF's decision in the Direct Actions of Unconstitutionality by Omission (ADPFs) of 2020 eliminated the Union's monopoly over lotteries and recognized the right of federated entities —including municipalities— to establish their own services, as long as they comply with federal legislation. “The creation of municipal lotteries promotes free competition and respects the municipal autonomy enshrined in the Constitution,” the entity noted in a statement.
The association also highlights that the São Gonçalo initiative is not only legal but also responds to a principle of freedom of choice for bettors, in addition to being a tool to meet local needs. “It is essential that this debate is based on respect for constitutional norms and the pursuit of social welfare,” concludes the note from ANALOME, which reaffirms its support for the prefecture and other municipalities that have already regulated their own lotteries through laws and decrees.
