Who can handle lotteries?
The Constitution states that the Federal Government has exclusive authority to create laws about “consortium and lottery systems” (this is outlined in Article 22, Clause XX). However, in 2020, the Supreme Federal Court (STF) ruled that States could operate lottery services, provided they comply with the general rules established by the Federal Government.
And municipalities? Their scope of action is much more limited. They can legislate on issues of local interest and supplement state and federal laws as outlined in Article 30 of the Constitution. The problem is that lotteries don’t fit the definition of a “local interest” matter. Lotteries involve broader economic and social issues that go beyond the municipalities’ capacity and jurisdiction.
Why don’t municipal lotteries make sense?
Creating a municipal lottery would bring more confusion than solutions. First of all, it has no constitutional basis. There’s no article or law granting municipalities the right to operate such services. Additionally, allowing each city to establish its own lottery could complicate oversight, increase the risk of irregularities, and even divert funds meant to benefit the population.
Another issue is that lotteries require strong, centralized oversight to ensure they operate fairly. If every municipality were allowed to create its own lottery, maintaining control and ensuring funds are used properly would be nearly impossible.
Conclusion
In summary, municipal lotteries are not only unfeasible but also unconstitutional. Brazil’s Constitution is clear: the Federal Government sets the rules, and States, at most, can operate lotteries within those guidelines. Municipalities, however, are not authorized to engage in this kind of activity. So, any attempt to establish a municipal lottery is likely to be challenged in court. This isn’t a matter of opinion—it’s a matter of law.
Daniel Romanowski
President of Lottopar
