The Minas Gerais Public Prosecutor's Office (MPMG) has opened a civil inquiry into the bidding process for the Minas Gerais State Lottery (LEMG), following allegations of serious irregularities in a concession contract valued at an estimated R$15.4bn ($3.09bn) over 25 years.
The investigation was triggered by a complaint from the Association of Gaming and Lottery Operators of Minas Gerais (Assoperlot-MG), which alleges administrative misconduct, damage to public funds and fraud in connection with International Public Tender LEMG No. 001/2026.
The association's legal representative, Fernanda São José, presented evidence to the MPMG claiming the process was designed to benefit the current operator, multinational Intralot, at the expense of approximately 72,000 local retailers.
Among the key irregularities cited is the failure to publish a Preliminary Technical Study prior to the public consultation stage. According to São José, the document was only entered into the state government system on the morning of the consultation itself – on 31 March – and only after she raised the issue publicly. She also claims that a request was made to halt the recording of the event at that point.
The MPMG has indicated it is reviewing potential alterations to the stenographic notes from the public consultation.
The Director-General of LEMG, Onésimo Diniz Moreira, and Deputy Director Antônio Celso Alves Pereira Filho are among those under scrutiny.
The Director-General has been given 15 working days from 9 April to respond.
Prosecutors have identified potential offences including frustration of competitive bidding, ideological falsehood and procedural fraud. They have also flagged the risk of a private monopoly forming in breach of constitutional principles around free competition. The Minas Gerais Government has not responded to requests for comment at this time.
The LEMG probe is the latest in a series of regulatory challenges to affect the Minas Gerais gambling sector. Last month, a lottery outlet in the state faced the potential revocation of its operating licence following financial irregularities and a failure to submit mandatory accounting reports.
More broadly, Brazil's betting industry is navigating an increasingly complex political landscape, with the sector becoming a focal point in debates ahead of the 2026 elections as prominent figures link its expansion to rising household debt.
The Minas Gerais lottery concession is valued at approximately R$15.4bn ($3.09bn) over 25 years, making it one of the largest regional lottery contracts in Brazil
