Brazil Moves to Standardize State and Municipal Lotteries

Brazil is advancing toward a more regulated and transparent lottery sector with the introduction of PL 5982/2025 by Congressman Marangoni (UNIÃO/SP). The bill, filed on 26 November 2025 with the Chamber of Deputies, aims to create a unified legal framework for state and municipal lotteries, covering their operation, oversight and revenue distribution.

Establishing Clear Rules and Categories
PL 5982/2025 seeks to provide consistent regulations for all lotteries, defining them as any game awarding prizes through draws, instant wins, fixed-odds bets, or similar methods. The bill also categorizes lotteries into five main types: numerical prognosis, specific prognosis, instant, passive and fixed-odds betting lotteries. This classification is designed to clarify operational rules and ensure each type follows appropriate safeguards.

Transparency and Accountability at the Core
A key goal of the bill is to strengthen fiscal responsibility and governance. It outlines clear guidelines for public administration, oversight agencies and concessionaires, including financial reporting, accountability measures and operational integrity. By setting these standards, the framework aims to increase public trust and improve efficiency across state and municipal lotteries.

Modernization and Security Measures
Recognizing the evolution of the sector, PL 5982/2025 includes requirements for modern technological systems, digital operations and anti–money laundering safeguards. These measures are intended to protect consumers, promote fair competition and align Brazil’s lottery industry with international best practices.

Revenue Allocation for Social Benefits
The bill prioritizes the allocation of lottery revenues to key public sectors, including health, education, public security, social assistance, and sports. Minimum allocation percentages are proposed for each area, ensuring funds benefit the communities where lottery activities occur and reinforcing the social impact of the sector.

Operation Through Public or Concession Models
State and municipal lotteries can be managed directly by public authorities or via concessions. Concession agreements would be limited to 15 years, allowing for periodic reviews to keep operations aligned with technological developments, market conditions and public interest.

A Major Step Toward Modernization
If passed, PL 5982/2025 would bring coherence, transparency and sustainability to Brazil’s subnational lottery operations. By combining regulatory oversight, technological modernization and social revenue allocation, the bill promises to improve public confidence, enhance social outcomes and ensure long-term viability for state and municipal lotteries.