A controversial municipal lottery framework approved in São José dos Campos last year could now be revoked following a new proposal currently under discussion in the city council.
Councilman Lino Bispo, from the Liberal Party (PL), introduced Complementary Bill 6/2026 seeking to revoke Municipal Lottery Law 694/2025, which formally established the city’s public lottery service in September last year.
The move is notable because Bispo himself originally voted in favour of creating the municipal lottery when the measure was first approved.
According to the proposal, the main justification for repealing the law is a legal interpretation linked to Brazil’s Federal Supreme Court (STF) and Federal Law 13.756/2018, which expressly authorises lottery operations only for Brazilian states and the Federal District.
The argument presented in the bill states that municipalities were not included within the constitutional scope allowing direct lottery exploitation, potentially placing São José dos Campos’ framework in conflict with federal legal understanding.
The original municipal lottery law passed in 2025 by 16 votes to five.
Supporters at the time argued that a local lottery could generate additional public revenue for the municipality, while critics questioned both the legality and the risks associated with expanding gambling operations at municipal level.
The latest development reflects the ongoing legal uncertainty surrounding local gambling regulation in Brazil as municipalities continue testing the boundaries of authority within the country’s evolving betting framework.
Brazil’s regulated betting market continues growing, with at least 25 operators still awaiting federal authorization from the SPA
