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Brazil: Cuiabá Mayor moves to revoke municipal lottery law

Proposal cites Supreme Court ruling and legal uncertainty around municipal betting operations.

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Key Points
Bill seeks to repeal 2022 law that authorized Cuiabá’s municipal lottery
Move follows STF decision suspending municipal betting activities
City cites legal, administrative and social risks

Cuiabá Mayor Abílio Brunini has submitted a bill to the City Council seeking to revoke the legislation that created the municipality’s public lottery service. 

The proposal, filed under an urgent procedure, would fully repeal Law No. 6,872, which authorized the establishment and operation of a municipal lottery.

According to the City Hall, the initiative aims to align local legislation with the current position of the Supreme Federal Court (STF), which in a precautionary ruling suspended municipal involvement in lottery operations. 

The Executive argues that the Court determined that lottery activity does not fall within the scope of local interest, as it involves economic, financial and technological operations that exceed municipal boundaries and require national coordination and regulatory standardization.

In its message to councilors, the administration warned that maintaining the municipal lottery could expose Cuiabá to legal and financial risks, including potential daily fines if contracts signed under the revoked law remain in force. 

The STF’s decision, the proposal notes, has immediate and binding effect, making the continuation of the service legally unfeasible.

Technical opinions issued by the municipal regulatory agency Cuiabá Regula and the Attorney General’s Office also pointed to structural challenges. 

According to the Executive, supervising lottery activities would require specialized infrastructure, including continuous auditing of digital systems, international software certification and ongoing financial monitoring, exceeding the municipality’s administrative capacity.

The proposal also highlights social and public health concerns, stating that expanded access to gambling without adequate regulatory oversight may contribute to problem gambling, financial distress and social vulnerability, particularly among lower-income groups.

Good to know

More than 55 Brazilian municipalities enacted their own lottery laws in 2025 alone, with over 80 doing so in the last three years

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