São Paulo City Council Appeals to STF Against Suspension of Municipal Lottery Law

Brazil.– January 29, 2026 – www.zonadeazar.com  The São Paulo City Council has filed an appeal with Brazil’s Supreme Federal Court (STF) challenging the suspension of a local law that had established a legal framework for municipal lotteries, raising constitutional questions about legislative competence and regulatory authority.

Overview

The São Paulo City Council lodged an internal grievance with the STF to undo a judicial order that halted the implementation of Municipal Law No. 18,172/2024, which had permitted the operation of municipal lottery services. The injunction emerged from an Arguição de Descumprimento de Preceito Fundamental (ADPF) affecting similar laws across various municipalities.

Details / Context

The injunction, granted by Minister Nunes Marques, suspended the effects and administrative actions tied to municipal lotteries and halted ongoing operations, on the grounds that regulating lotteries falls within the federal and state legislative domain. Under this interpretation, municipal initiatives could overstep the constitutional distribution of legislative powers.

São Paulo’s legislative body argues that the law had been functioning with regular administrative effects and that its sudden suspension disrupts public services and ongoing procurement procedures. The appeal invokes legal provisions allowing modulation of judicial rulings for reasons of legal certainty and significant public interest.

Specific points

The appeal seeks the revocation of the injunction or, alternatively, its referral to the full court for a collective ruling. Secondary requests include modulation of the injunction’s effects to protect administrative acts already taken and to avoid the imposition of substantial fines for non-compliance.

At stake is a broader debate on municipal autonomy versus the supremacy of federal legislation in areas that may affect national regulatory coherence.

Future outlook

The court’s decision could set an important precedent for other municipalities seeking to enact local gaming and lottery regulations. The STF will balance competing constitutional principles of legislative authority with considerations of regulatory stability and legal certainty.

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