New bill proposes unified regulations for state lotteries in Brazil

The Legal Framework for State and Municipal Lotteries aims to standardise rules for state and municipal lotteries in Brazil.

Brazil.- Federal deputy Fernando Marangoni has presented Bill No. 5,982/2025, which proposes a unified regulatory framework for state and municipal lotteries in Brazil. The draft proposal outlines rules on governance, licensing, integrity, technology, player protection and resource allocation for operations at the subnational level.

The Legal Framework for State and Municipal Lotteries aims to standardise the creation, operation, oversight and financing of regional lotteries with rules for supervision, financial transparency and the allocation of revenue. States and municipalities that already operate lotteries would have to adapt their operations to meet the national norms once the law takes effect.

The bill would allow lottery operations may be carried out directly by entities owned by regional administrations or delegated to the private sector through bidding, concessions, accreditation or public-private partnerships. Contracts would have a maximum term of 15 years and would be subject to audits by internal and external bodies, including audit courts.

Although operators may only operate within the geographical boundaries of a specific state or municipality, consumers would retain the freedom to choose where to place their bets.

To receive a delegation, companies would have to demonstrate a local presence, financial capacity, suitability of partners and executives, tax and labour compliance, and an auditable and secure technological infrastructure. Conflicts of interest with sports entities would be prohibited, and membership in integrity bodies would be required when betting is linked to sports.

The figure of a “lottery advisor” would be allowed as an intermediary permitted to acquire tickets, store receipts, deliver prizes, and operate distribution platforms or networks. These do not replace the authorised operator, who would remain ultimately responsible for the integrity and legality of the service.

The bill dedicates an chapter to player protections, outlining requirements for clear information, data protection in accordance with Brazil’s General Data Protection Law, accessible customer service and tools for preventing compulsive gambling. Participation by minors, the offering of credit for betting, bonuses that incentivise gambling and advertising aimed at children or that presents gambling as a source of income would all be prohibited. Operators would have to offer self-limitation mechanisms, alerts for compulsive behaviour, self-exclusion and educational materials.

As for technological integrity, systems would have to be fully auditable, and the use of technologies such as blockchain is encouraged to ensure traceability. Regulators would have continuous and secure access to systems, and oversight would be the responsibility of the public entity that owns the service, the courts of accounts and the Public Prosecutor’s Office.

Regarding revenue collection, the bill stipulates that income be allocated exclusively to areas of public interest such as health, education, social assistance, sports, security, culture, tourism, innovation, and technology. Each jurisdiction must create a Special Lottery Management and Guarantee Fund, financed with 0.05 per cent of gross revenue. Prizes not claimed within 90 days would be divided between education and civil defence funds. Quarterly reports on financial and operational transparency would be required.

The bill also proposes rules for payment methods, which would need to be integrated with Pix, guarantee full traceability and allow the regulator direct access to operational accounts.

The proposal comes after Brazil launched regulated online betting at the start of this year. A proposal to regulate land-based gambling, including land-based casinos, remains pending after years of delay.