STF Allows Brazilian States to Explore State Lotteries

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STF Allows Brazilian States to Explore State Lotteries
Photo: Agencia Brasil

This Wednesday, the 30th, the Federal Supreme Court (STF) unanimously determined that lottery exploration is not something exclusive to the Federal Government. Therefore, state and Federal District administrations can also create, expand and manage state lotteries .

The Supreme Court evaluated actions that considered the Union’s monopoly for the lottery sector issue based on a 1967 decree. Therefore, the law vetoed the launch of new state lotteries and the increase of existing ones.

For this reason, state lotteries relied on preliminary decisions to continue operating, which generated “legal uncertainty”. In the understanding of the STF ministers, the Union has the authority to regulate and define the lottery system, but it does not have exclusivity for the exploration of this segment.

Ministers unanimously authorized the exploitation of state lotteries

However, state governments that intend to explore the activity from now on need to follow federal determinations.

“This situation removes a significant source of revenue from the states. The exploitation of lotteries bears the nature of public service ”, stressed Minister Gilmar Mendes, rapporteur for the actions, when taking a stand against the Union’s monopoly.

The rapporteur’s vote ended up being followed by Edson Fachin, Rosa Weber and Dias Toffoli. “The Constitution does not provide for exclusivity in exploitation by the Union, it does not provide for the possibility for some states to maintain these lotteries, while others are absolutely prohibited,” said Alexandre de Moraes.

Minister Carmen Lucia stated that restricting state lotteries could weaken the federation. Subsequently, Minister Ricardo Lewandowski declared that there is no measure in force, preventing the management of these activities by the states.

STF President, Minister Luiz Fux and Minister Marco Aurélio Mello concluded the work also following the rapporteur’s opinion.

“In spite of the normative activity being of exclusive competence, it does not prevent administrative activity from being carried out by federated activities”, concluded Fux.