Finance

Cuiabá Moves to Revoke Municipal Lottery Law

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Cuiabá Moves to Revoke Municipal Lottery Law

Cuiabá’s City Council has approved a legislative initiative to fully revoke Municipal Law No. 6,872 of October 28, 2022, which had established the city’s Public Lottery Service. The decision followed an extraordinary online joint meeting on Thursday (19).

Filed under Process No. 6068/2026, the project originates from the city’s Executive Branch and removes the legal framework that allowed the creation of a municipal lottery. By rescinding the 2022 legislation in full, the city officially abandons its lottery plans.

The proposal was reviewed by the Commission on Constitution, Justice and Drafting (CCJR) and the Commission on Social Security and Public Administration (CPAP), both of which issued favorable opinions. The next step is plenary discussion according to City Council procedures.

Coordination with Federal Supreme Court Ruling

The repeal aligns with federal judicial developments. On December 4, 2025, Justice Nunes Marques of the Supremo Tribunal Federal (STF) suspended all municipal laws and decrees authorizing or regulating lotteries and sports betting nationwide.

The suspension, part of ADPF 1212 filed by the political party Solidariedade, also halted existing municipal lottery operations. The party argued that municipalities lack constitutional authority over lotteries, which fall under federal jurisdiction.

Justice Nunes Marques emphasized that municipal authorities cannot regulate lottery operations, which carry national economic and regulatory significance. Decentralized regulation, he noted, would weaken federal oversight and complicate standardization in areas such as advertising, consumer protection and public health safeguards.

Non-compliance carries severe penalties: municipalities continuing lottery operations face R$500,000 per day in fines, while mayors and company heads can be personally fined R$50,000 daily.

Implications for Municipal Lottery Initiatives

Cuiabá’s decision reflects a growing trend among municipalities reviewing local lottery laws following STF rulings. The federal suspension confirms that lottery regulation remains under central authority, requiring local governments to reconsider previously planned or implemented lottery systems to comply with constitutional and federal mandates.

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