The Paraná State Court of Accounts (TCE-PR) has advised municipalities not to establish local lottery operations until Brazil’s Supreme Federal Court (STF) reaches a final decision on the constitutional limits of municipal lottery activity.
The guidance was issued in response to a consultation submitted by the municipality of Cornélio Procópio, which sought clarification regarding the legality and constitutionality of a local law authorizing lottery operations within the city.
In its analysis, the TCE-PR concluded that municipalities should refrain from implementing existing lottery legislation or approving new local lottery laws while the matter remains under review by the STF through ADPF 1212.
The court noted that federal legislation currently authorizes lottery operations by the Federal Government, states and the Federal District, but does not expressly extend that authority to municipalities.
Technical staff involved in the review referenced previous Supreme Court decisions issued in 2020, which established that while the Federal Government cannot maintain an exclusive monopoly over lottery operations, states are permitted to operate lottery services provided they comply with federal regulations.
However, the court highlighted that those rulings did not extend the same interpretation to municipalities.
Judge Durval Amaral acknowledged that municipalities may view lottery operations as a potential source of revenue for public services such as healthcare, education and social assistance.
However, he concluded that the ongoing constitutional debate creates sufficient legal uncertainty to justify a precautionary approach until the Supreme Court provides definitive guidance.
The recommendation was unanimously approved by the court’s plenary and formalized through Decision No. 552/26.
More than 600,000 people have voluntarily registered on Brazil’s national self-exclusion platform, according to the Ministry of Finance.
