The future of municipal lotteries in Brazil has been thrown into uncertainty following a landmark decision by the Supreme Federal Court (STF) on December 3, 2025. Minister Nunes Marques issued a sweeping preliminary injunction that immediately suspends the creation and operation of all municipal lotteries across the country, including those involving sports betting. This move, which stems from the Argument of Non-Compliance with Fundamental Precept (ADPF 1212) filed by the Solidariedade party, has sent shockwaves through dozens of Brazilian cities and reignited legal and political debates over the boundaries of federal, state, and municipal authority.
According to Estadão and official statements from the National Association of Municipal and State Lotteries (ANALOME), the injunction halts the validity of every municipal law, decree, public notice, and contract related to lottery activities. The order is unequivocal: municipalities must immediately cease ongoing lottery operations and refrain from initiating any new ones. This includes suspending all administrative and regulatory processes linked to municipal lotteries, with the explicit goal of ensuring full compliance with the STF’s directive.
Minister Marques’s decision is rooted in recent changes to federal law. He cited Law 14,790, which amended Law 13,756/2018, as the legal foundation for the suspension. This legislation centralized the regulation and licensing of sports betting and online gaming within the Ministry of Finance’s Secretariat of Prizes and Betting (SPA/MF). Notably, it created Article 35-A, which formally authorizes only states and the Federal District—not municipalities—to operate lottery services. Marques argued that municipalities lack constitutional authority to run such enterprises, describing lotteries as activities of national or regional relevance that fall under federal and state jurisdiction.
In his decision, Minister Marques didn’t mince words about the scale and speed of municipal lottery expansion. He highlighted that more than 80 municipalities have enacted lottery regulations over the past three years, with 55 doing so in 2025 alone. These measures have spread across 17 states, with Belo Horizonte and 21 other cities specifically cited in the ADPF. However, the minister noted that the trend is even broader, listing an additional 70 municipalities that have adopted similar rules. Marques warned that this proliferation amounts to an “unconstitutional metastasis,” threatening to destabilize federal oversight, encourage unauthorized operators, and create competitive distortions among Brazil’s federative entities.
To underscore the seriousness of the injunction, the STF established steep penalties for any municipality or company that fails to comply. Municipalities and companies that continue operating lotteries face fines of R$ 500,000 (approximately US$94,000) per day. Mayors and executives who ignore the order are subject to personal fines of R$ 50,000 (about US$9,400) per day. The Ministry of Finance’s SPA, the National Telecommunications Agency (Anatel), and the National Association of Games and Lotteries (ANJL) have all been notified to reinforce the blocking of illegal betting platforms, adding another layer of enforcement to the federal government’s crackdown.
For municipalities and local officials, the ruling represents a dramatic reversal. In recent years, many cities had looked to lotteries as a way to supplement local revenues, fund public projects, and exert greater control over gambling activities within their borders. According to G1, the legal debate over municipal lotteries is not new. The STF has previously addressed the issue in cases such as ADPFs 492 and 493, where it consolidated a technical understanding that municipalities could, in theory, operate lotteries—so long as they adhered to relevant federal regulations. ANALOME, which represents both municipal and state lotteries, has consistently argued that municipalities have constitutional and legal support for such ventures, provided they stay within the bounds of federal law.
In a carefully worded statement, ANALOME acknowledged the new injunction and its sweeping impact. “The National Association of Municipal and State Lotteries (ANALOME) informs that it is closely monitoring the preliminary injunction issued by Minister Nunes Marques of the Supreme Federal Court on December 3, 2025, within the scope of ADPF 1212, which ordered the suspension of municipal legislation relating to the establishment of lotteries, as well as the interruption of operations currently underway in the country.” The association emphasized its respect for judicial decisions and reaffirmed its commitment to legality and transparency. While the injunction is in effect, ANALOME has advised all municipalities to immediately suspend any administrative or regulatory processes related to municipal lotteries and to halt all ongoing operations.
Despite its disappointment, ANALOME expressed hope that the STF’s Virtual Plenary—where the injunction is currently under review—will allow for a thorough and collegial examination of the issue. As an admitted Amicus Curiae in ADPF 1212, the association trusts that the plenary session will ultimately provide the legal certainty and institutional stability needed by federative entities, sector operators, and society at large. ANALOME’s statement underscored its intention to continue collaborating with authorities and contributing to the debate “in a technical, calm manner, aligned with the public interest.”
Minister Marques’s ruling has also prompted a broader discussion about the limits of municipal autonomy in Brazil’s federative system. Supporters of the injunction argue that a patchwork of municipal lotteries undermines national oversight, increases the risk of unregulated gambling, and creates unfair competition among states and cities. They point to the federal government’s central role in regulating gambling—especially in the wake of recent scandals involving illegal betting platforms—as a necessary safeguard for both consumers and public finances.
On the other hand, many municipal leaders and advocates for local governance see the injunction as an overreach that stifles innovation and deprives cities of much-needed revenue. They argue that municipalities are best positioned to understand local needs and should be allowed to experiment with lottery models tailored to their communities, as long as they operate within a transparent and regulated framework. ANALOME’s position, as reflected in its public statements, captures this tension: while committed to upholding the law, the association maintains faith in the “full legal viability of municipal competence to operate lotteries in a regular manner and aligned with the current legal framework.”
As of now, the future of municipal lotteries in Brazil hangs in the balance. The STF’s Virtual Plenary has yet to ratify or overturn Minister Marques’s preliminary injunction, leaving municipalities in a state of legal limbo. With the threat of steep daily fines and federal agencies on alert to block unauthorized betting platforms, cities have little choice but to comply—at least for the time being.
For Brazil’s lottery sector, this moment marks a turning point. Whether the STF ultimately upholds the suspension or carves out space for municipal innovation, the decision will shape the legal and regulatory landscape for years to come. As the debate unfolds, all eyes remain on the Supreme Federal Court and its next move in this high-stakes legal contest.
