The Public Prosecutor's Office of Rio Grande do Norte (MP) has filed a series of Direct Actions of Unconstitutionality (ADIs) targeting municipal laws that regulate fixed-odds betting in 17 cities across the state.
The challenges, submitted to the Rio Grande do Norte Court of Justice, seek to suspend local legislation that, according to the MP, improperly authorizes the operation of municipal lotteries tied to betting activities.
The new filings follow a similar ADI submitted recently against the municipality of Bodó, where the local LotSeridó initiative led to a BR145m ($27,6m) asset freeze after investigators identified irregularities in its operation.
The MP now contests equivalent frameworks in different municipalities across the state.
According to the MP, the issue goes beyond administrative disagreement and directly concerns constitutional limits.
The office argues that municipal governments are attempting to legitimize operations under the guise of local lotteries, despite clear federal restrictions.
In an official justification, the MP stated: "This position is consolidated and pacified by the Supreme Federal Court, which expressly prohibits municipalities from exploiting such services.
"For the MP, the creation of these municipal lotteries is not justified by a 'local interest' and disrespects the federative pact, as the regulatory complexity and oversight of games and betting require national-level action."
The MP is requesting an urgent preliminary injunction to immediately suspend the effectiveness of all questioned municipal laws.
The goal is to prevent irregular operations from continuing under what prosecutors describe as a "false mantle of legality" and to avoid broader risks to public and economic order.
Brazil is also advancing a bill to redefine rules for federal lottery outlets
