Brazil Bill Proposes Unified Rules for State & Municipal Lotteries
Federal deputy Fernando Marangoni has introduced legislation to create a single legal framework for state and municipal lotteries across Brazil.
LISTEN TO THIS ARTICLE:Bill No. 5,982/2025 – titled the Legal Framework for State and Municipal Lotteries – proposes standardized rules for governance, licensing, technological integrity, player protection and revenue distribution for lotteries run at the subnational level. The draft sets out how states and municipalities should create, operate and oversee lottery services and would require existing regional operators to adapt their practices to the new national standards once the law takes effect.
Under the bill, lottery activity could be conducted directly by public entities or outsourced to private firms via competitive bidding, concessions, accreditation or public–private partnerships. Delegation contracts would be capped at 15 years and subjected to mandatory audits by internal auditors, state audit courts and other external control bodies. Operators would be restricted to working within a specific state or municipality, while consumers would retain freedom to place bets across jurisdictions.
To qualify for delegation, companies must demonstrate a local presence, adequate financial capacity, clean tax and labour records, suitability of key partners and executives, and an auditable, secure technological infrastructure. The proposal bans conflicts of interest with sports bodies and requires membership in integrity schemes when products are linked to sporting events. The bill also formally recognises the role of intermediaries – termed "lottery advisors" – who may sell tickets, store receipts, deliver prizes and run distribution networks, while leaving ultimate legal responsibility with the authorised operator.
Related: Brazil's Legal Gambling Launch Not Stopping Illegal Segment
Key Rules on Player Safety, Technology and Revenue
Champions of the bill stress its focus on player protections and technological transparency. A dedicated chapter mandates clear consumer information, adherence to Brazil’s General Data Protection Law for handling personal data, accessible customer service and a range of responsible-gambling tools including self-limits, self-exclusion and behavioural alerts. The draft forbids minors from participating, prohibits offering credit for betting, and bans bonuses or advertising that targets children or portrays gambling as a source of income.
On technology, systems would have to be fully auditable, and regulators granted continuous, secure access to operational platforms. The bill explicitly encourages traceability technologies such as blockchain and requires payment systems to integrate with Pix, ensuring end-to-end traceability and direct regulator access to operational accounts.
All revenue is earmarked for public-interest areas: health, education, social assistance, sports, security, culture, tourism, innovation and technology. Each jurisdiction must create a Special Lottery Management and Guarantee Fund, financed by 0.05% of gross revenue. Prizes not claimed within 90 days would be reallocated to education and civil defence funds, and authorities would publish quarterly financial and operational reports.
"This framework seeks to reconcile regional autonomy with national standards", Fernando Marangoni said. "By establishing clear governance, rigorous audits and strict player protections, we aim to strengthen public confidence in lotteries and ensure funds are deployed for social priorities."
Industry and compliance experts welcomed the clarity but flagged implementation challenges. "A national template will reduce legal fragmentation and improve oversight, but success depends on regulator capacity at state level and rigorous enforcement", said Mariana Oliveira, senior analyst at BetSight, an iGaming consultancy. "States will need technical resources and harmonised procedures to perform audits and enforce consumer protections consistently."
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The bill arrives in a changing Brazilian gambling landscape: regulated online betting launched earlier this year, while a broader law to govern land-based casinos and broader gambling remains pending. Debate in the Chamber of Deputies is expected to consider the balance between public operators and private concessionaires, the technical readiness of states, and how quickly transitional rules should apply to existing contracts.
If approved, the law would mark a major step toward centralised standards for subnational lottery activity and could accelerate modernization of systems and oversight across Brazil. Lawmakers must now refer the text to relevant committees for analysis, where amendments and stakeholder testimony could reshape key provisions before any final vote.
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