The Court of Auditors of the State of Piauí (TCE-PI) issued an official warning to all municipalities in Piauí. The communication occurred during an ordinary plenary session held on November 27th. Subsequently, the unanimous decision was published in the Electronic Official Gazette on December 1st.
The warning addresses the impossibility of creating, regulating, or operating municipal lotteries, and the prohibition covers any modality, whether physical or digital.
The decision came after an analysis of a report forwarded by the bidding and contracts oversight department. The technical area identified a proliferation of bids aimed at granting lottery service concessions in several municipalities.
Municipal jurisdiction over lotteries does not exist.
The technical area located published notices with a specific objective. These documents aimed at granting concessions for the exploration, implementation, and operation of municipal lotteries. The proposals covered the management of betting on physical and digital platforms.
The establishment of these contests occurred without any constitutional or legal basis authorizing municipalities to institute their own betting systems.
The full court unanimously approved the issuance of the warning. The communication warns about three main points. First, municipalities do not have constitutional authorization to create, regulate, or operate lotteries in any form.
Second, there are risks of unconstitutionality and nullity, with the possibility of sanctions against those responsible. Third, managers have immediate duties to fulfill.
According to the warning, if the Supreme Federal Court rules in favor of the Claim of Non-Compliance with Fundamental Precept No. 1,212/SP, all rules and administrative acts aimed at creating or granting municipal lotteries will be declared unconstitutional.
Likewise, bidding procedures aimed at its exploitation will be considered null and void.
In this case, managers and others responsible for conducting bidding processes or carrying out acts aimed at creating or operating a municipal lottery may be personally sanctioned.
Immediate duties of municipal managers
Until the final judgment on the ADPF (Arguição de Descumprimento de Preceito Fundamental – Claim of Non-Compliance with a Fundamental Precept), municipalities must follow specific guidelines. First, they must refrain from enacting laws, decrees, or regulations that establish lotteries.
Conversely, they must refrain from holding tenders whose object is the concession of lottery services. Furthermore, they must immediately suspend any ongoing bidding procedures, even if they have already been published or sessions have begun.
Managers are also prohibited from signing contracts resulting from approved bidding processes. Similarly, they should not execute contracts that may have already been signed, thus avoiding exacerbating the effects of void acts.
It is worth noting that the court identified that the matter is being debated in the context of ADPF No. 1,212/SP, which is being processed in the Supreme Federal Court (STF). This action specifically addresses the constitutionality of municipal laws that created lotteries in various cities across the country.
According to the Federal Public Prosecutor’s Office, which has already stated categorically in the lawsuit, municipalities do not have the authority to legislate or operate lottery services. This authority is exclusive to the Federal Government and, in administrative terms, restricted to the States and the Federal District, according to precedents of the Supreme Federal Court itself.
Legal context and constitutional risks
According to the opinion of the Attorney General’s Office, attached to the records of the ADPF (Arguição de Descumprimento de Preceito Fundamental – Claim of Non-Compliance with a Fundamental Precept), “the administrative competence to operate lotteries recognized to the States and the Federal District does not extend to municipalities.” The document also highlights that the very nature of lottery activities goes beyond the scope of local interest, making their operation by municipal entities unfeasible.
In addition to constitutional violations, lottery services — especially in digital formats — have a territorial reach far exceeding that of a municipality. This would reinforce the local lack of authority to legislate, operate, or grant concessions for such activities.
According to ADPF No. 1.212/SP, this practice, if consolidated, could generate risks to the economic order, to the consumer, and to legal certainty. It could also foster an environment of uncontrolled proliferation of sportsbooks.
Based on the concurrent monitoring carried out by the inspection department, the court identified bidding procedures already published by municipalities in Piauí.
These bidding processes aimed to delegate the operation of municipal lotteries to private entities. According to the audit court, such procedures have a legally impossible objective, constituting an incurable flaw.
Irregular bidding processes and principles of public procurement.
As established by Law No. 14.133/2021, public procurement must observe the principles of legality, justification, legal certainty, and planning. Adopting bidding procedures for unconstitutional purposes directly violates Article 5 of the New Bidding Law.
Therefore, it renders the process and all subsequent acts null and void, requiring immediate correction by the manager, in light of administrative self-regulation.
The decision was made by the council members present, under the chairmanship of council member Joaquim Kennedy Nogueira Barros. The Public Prosecutor’s Office for Accounts expressed its support for issuing the warning.
According to the court, the measure is preventive and advisory in nature, aimed at safeguarding legality, legal certainty, and public assets.
The court emphasizes that it remains vigilant in monitoring public procurement in the state. Likewise, it will continue to work to prevent irregularities, support municipal management, and ensure compliance with the legal framework at all stages of the bidding processes.
