Since the regulation of fixed-odds betting in December 2023, 77 Brazilian municipalities have passed laws to create their own municipal lotteries. Despite this progress, the federal government considers these initiatives irregular.
Expansion of municipal lotteries
According to a survey by the portal G1 , three cities have approved laws that have not yet been sanctioned. Another 39 laws have been sanctioned but have not made any practical progress.
Seventeen municipalities are in the study or implementation phase, while another 17 are awaiting public notices or bids to hire operating companies. Only Bodó, Rio Grande do Norte, already has a lottery in operation.
Of the 77 municipalities, 10 intend to operate only bets, as fixed-odds bets are known. The remaining laws include raffles and other modalities.
The goal of municipal administrations is to increase revenue to fund areas such as healthcare, education, and social assistance. Some municipalities have set fees of between 2% and 5% on operating companies’ revenue.
Interpretations and legal impasse
The Secretariat of Prizes and Bets (SPA), linked to the Ministry of Treasury, classifies the creation of these lotteries as irregular. Law 14.790/2023 stipulates that only the Union, states, and the Federal District may operate fixed-odds bets. The text does not mention municipalities, which has generated divergent interpretations.
The Federal Supreme Court (STF) ruled in 2020 that the federal government did not have exclusive rights over lotteries, extending the right to the states. Since then, the lack of specific rules for municipalities has opened the door to varying legal interpretations.
Professor Telma Rocha, from Mackenzie University Alphaville, explains: “The interpretation of municipalities is that, since there is no express prohibition, they are authorized to create their own municipal lotteries.”
Researcher Luiz César Loques, from FGV Direito Rio, states that “The boom in the sector has made municipalities more attracted to exploring this type of activity.” He emphasizes, however, that “the Supreme Federal Court has not yet ruled on the matter.”
The decision on the matter depends on ADPF 1212 (Allegation of Non-Compliance with a Fundamental Precept), which assesses whether cities can operate lotteries. The case was forwarded to the Attorney General’s Office in September 2025.
Bodó
Bodó, Rio Grande do Norte, maintains the only active municipal lottery in the country. Mayor Marcelo Mário Porto Filho (PSD) sanctioned Lotseridó in July 2024. The law requires companies to register and allocate 2% of gross revenue to social programs.
According to G1, the municipality authorized 37 operators, but none have recognition from the Ministry of Treasury.
The government maintains a list of authorized national operators on its website and requests Anatel to remove irregular websites. In February, the Treasury Department notified the city of Bodó for violating current gambling legislation.
Experts warn that the expansion of municipal lotteries could increase consumer risks. Furthermore, the federal requirement for a R$30 million grant and compliance rules do not apply in these cases.
Finally, oversight would become more difficult and costly, considering the possibility of more than five thousand municipalities operating this type of service.
