BRAZILIAN REGULATION
Federation vs States vs Municipalities BRAZIL’S SUPREME COURT WEIGHS IN ON THE TWO- OR EVEN THREE-WAY STRUGGLE TO REGULATE NATION’S LOTTERIES FINDS CAIO DE SOUZA LOUREIRO
R ecent years have seen significant activity in the Brazilian gambling sector, with new legislation, Supreme Court rulings, and updated regulations resulting in a dynamic yet unstable market. A key topic of ongoing debate involves regulatory discussions among federative entities. The process began when States appealed to the Supreme Court for the authority to operate lotteries. Currently, Brazil faces complex regulatory challenges involving the Union, States, and Municipalities. Following two Supreme Court decisions that clarified the roles of the Union and States, the Court is now considering cases pertaining to restrictions on State-level operators and whether Municipalities also possess the right to operate. Concurrently, federal authorities are engaged in efforts to harmonize regulations and coordinate supervision and enforcement regarding sports betting and online gaming operators. The results of this discussion will influence the market landscape, addressing issues of competition as well as determining the barriers and permits that companies must navigate to operate in Brazil.
This article examines the status of federative disputes in the Brazilian gambling market, with emphasis on the roles of the federal government, the States, and the newly established operations of Municipalities. It provides an overview of the relevant legal background and discusses potential future developments in a scenario that remains undefined. How the Brazilian federation works Brazil is a federation in which powers and responsibilities are distributed among three entities: the Union, the States, and the Municipalities. According to the Brazilian Constitution, these entities hold two primary types of authority: the power to legislate and the power to manage and provide public services and utilities. The Constitution reserves certain matters for legislation exclusively by the Union, while others may be legislated by the Union, States, and Municipalities. In instances where all three entities have legislative authority, general rules established by the Union take precedence over State and Municipal laws.
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IMGL MAGAZINE | SEPTEMBER 2025
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