The municipality of Itaquaquecetuba, located in the state of São Paulo, officially launched its municipal lottery initiative, estimated to start operations by the first trimester of 2026.
The lottery has a projected investment of BR4.5m and an estimated gross revenue of BR326m over its first five years and it will be operated by SPLOTO, São Paulo state lottery, under a 20-year concession managed by the local finance department.
According to the municipality, proceeds will fund health and social assistance programmes, with BR260m allocated to prize payouts and BR10.7m set for municipal contributions.
Brazil's Secretariat of Prizes and Betting (SPA) of the Ministry of Finance maintains that such initiatives are irregular, noting that the national law that regulates fixed-odds betting limits authorization to the Union, states and the Federal District.
Municipalities are not explicitly mentioned in the text.
Itaquaquecetuba argues otherwise, mentioning a 2020 Supreme Federal Court decision that removed the Union's exclusivity over lottery operations. The city interprets that ruling as extending rights to municipalities as well, though the judgment specifically referenced states.
The issue is now before the Supreme Court, filed by a regional party, which seeks a definitive ruling on municipal lottery authorization. The case, under the hands of Justice Nunes Marques, has yet to be judged.
As municipalities experiment with alternative revenue streams amid tightening budgets, the launch of another state lottery underscores both the economic potential and the legal uncertainty in the country.
Elsewhere this week, it was announced that Brazilian banks had officially joined efforts with the Ministry of Finance to improve monitoring and compliance across betting transactions in the nation.
This initiative has reignited a growing legal and regulatory debate in Brazil over whether cities can legally operate betting and lottery services
