The Fight for Fair Play: Brazil’s Solidarity Party Battles Against Municipal Lotteries

On March 12, 2025, Brazil’s Solidarity party, known as Solidariedade, took a significant step by filing a lawsuit with the Federal Supreme Court (STF), seeking to suspend municipal lotteries throughout Brazil. This legal action, titled a Claim of Non-Compliance with a Fundamental Precept (ADPF), aims to address the potential constitutional violations of these local lotteries while awaiting a final decision from the STF.

The Solidarity party argues that municipal lotteries have created a “truly chaotic scenario,” with several jurisdictions, such as Bodó, reportedly disregarding federal laws. These municipalities are allegedly permitting companies without federal authorization to operate, often lacking the player protection measures and tax contributions mandated by federal regulations. Brazil comprises 26 states and over 5,500 municipalities, many of which are attempting to establish local laws to regulate lotteries and generate revenue.

Bodó, a small municipality with a population of just over 2,000, has attracted national attention for granting numerous licenses to operators at a cost of only BRL 5,000 (approximately £670.29, €796.81, or $867.70). This pricing starkly contrasts with the BRL 30 million fee required for a national license, raising concerns about the potential destabilization of Brazil’s newly regulated betting market. The Solidarity party’s lawsuit warns that these municipal lotteries could undermine financial stability and compromise player safety due to the varying levels of protection offered across different municipalities.

This legal challenge comes amid ongoing scrutiny of regional lotteries, highlighted by the case involving Rio de Janeiro’s Lotterj. The state lottery has been engaged in a protracted legal battle with the federal government, arguing that its state license should extend beyond Rio de Janeiro. However, in February, the STF upheld a preliminary injunction that barred Lotterj from operating nationally and instituted geolocation tracking to ensure its licensees remained within state boundaries. Daniel Romanowski, the president of the state lottery in Paraná, has indicated that the ensuing discussions will likely address the licensing capabilities of other municipal lotteries, predicting they may face similar restrictions.

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Meanwhile, the legal online betting market in Brazil, which officially launched on January 1, 2025, is anticipated to become one of the largest gambling markets globally. The sector faced considerable opposition in the latter half of 2024, with the Solidarity party previously filing a separate lawsuit questioning the constitutionality of federal betting laws. Additionally, the National Confederation of Trade in Goods, Services and Tourism (CNC) joined the fray with another ADI (Ação Direta de Inconstitucionalidade), prompting the STF to conduct a two-day hearing to assess the implications of betting in Brazil. The results of this hearing are expected to be announced in the first half of 2025, although industry consensus suggests it is unlikely that the betting laws will be overturned. The debate regarding non-federal licensing continues, with Bodó seemingly dismissing the legal uncertainties stemming from the Loterj ruling and federal warnings about banning its activities.