Brazil May Earn R$11.6 Billion Annually from Local Betting, But Experts Warn of Legal Risks
Brasil.- May 07 2025 www.zonadeazar.com A new survey by Leme Consultores, commissioned by Analome (National Association of Municipal and State Lotteries), suggests that legalizing municipal-level betting could bring in R$11.6 billion per year for Brazil’s federal government. Of that, nearly R$8 billion would come from small and medium-sized operators currently outside the formal sector due to the high cost of federal licenses.
The proposed local regulation would reduce entry barriers and encourage these businesses to formalize, expanding the tax base and generating new revenue.
“It’s time to respect municipal autonomy and promote best practices in lottery regulation across Brazil,” said Sofia Signorelli, Analome’s legal director.
Current regulation: national control only
Today, only the federal and state governments can authorize betting and gaming operations. Regulation is handled by the Secretariat of Prizes and Betting (SPA), under the Ministry of Finance, based on the Betting Law (No. 14.790/2023). Although passed in 2023, it is still being fully regulated.
Legal debate at the Supreme Court
In March, Brazil’s Supreme Federal Court (STF) began reviewing the legality of municipal lotteries after the political party Solidariedade filed a lawsuit arguing that only the Union has authority to legislate on lotteries and similar systems.
The Attorney General’s Office also filed a case to block local legislation promoting municipal betting operations.
Still, tax law expert Menndel Macedo argues that allowing municipalities to operate lotteries could generate fast revenue and be a smart alternative to taxing the wealthy.
“Denying municipalities this power goes against the principle of autonomy and delays access to a legitimate revenue source,” he said.
Warning: risks without proper infrastructure
According to regulation expert Ticiano Gadêlha, the move could backfire if not properly structured: “Brazil has barely started monitoring the betting market. Delegating control now, without legal and operational security, could worsen the situation,” he warned.
Editó: @_fonta www.zonadeazar.com