Brazil’s New Lottery Regulation Bill Aims for Transparency and Economic Growth

On November 26, 2025, Congressman Marangoni (UNIÃO/SP) introduced a groundbreaking bill in the Chamber of Deputies, marking a significant stride towards a regulated and transparent environment for state and municipal lotteries in Brazil. Known as PL 5982/2025, the bill seeks to establish a comprehensive Legal Framework for State and Municipal Lotteries, emphasizing regulation of operations, supervision, and proper allocation of revenues at various subnational levels.

At the heart of PL 5982/2025 is a directive to provide uniform regulations regarding the operation of lotteries across Brazil. The bill extends its purview to include exploration, oversight, revenue collection, and distribution. Such regulations are intended to ensure that all state and municipal lotteries function within a clearly defined and consistent legal structure.

By defining lotteries as activities involving the distribution of prizes through draws, instant wins, fixed-odds bets, or similar methods, Article 2 of the bill endeavors to eliminate ambiguities and provide legal certainty to both public authorities and operators. The proposal officially categorizes lotteries into five types: numerical prognosis lotteries, specific prognosis lotteries, instant lotteries, passive lotteries, and fixed-odds betting lotteries. This classification aims to systematize the lottery sector, guaranteeing that every operation adheres to pertinent rules and safeguards.

Transparency and fiscal responsibility are pivotal elements of this legislative proposal. It aims to ensure that all lottery-generated resources are managed with transparency, reducing the risk of misuse or inappropriate allocation of funds. Governance principles are outlined for all participating entities, setting expectations for public administration, oversight bodies, and concessionaires. These principles focus on accountability, financial control, and transparent reporting, which are critical for bolstering public trust and enhancing the efficiency of state and municipal lottery operations.

Recognizing the rapid technological evolution within the lotteries and betting sectors, PL 5982/2025 includes recommendations for adopting advanced technologies and digital operation models. It sets out criteria for the systems used in lottery games, emphasizing consumer protection and fair competition. A significant portion of the bill is dedicated to anti-money laundering efforts, acknowledging the substantial financial volumes involved in lottery activities. Introducing preventive measures is deemed essential to uphold the sector’s integrity and align domestic practices with international standards.

The bill also addresses revenue allocation, insisting that lottery proceeds should primarily benefit socially significant sectors such as health, education, public security, social assistance, and sports. It prescribes minimum percentages for allocation in each area to maximize the positive impact of lottery revenues on local communities. To foster regional development, the proposal ensures that funds benefit the regions where lottery activities occur, reinforcing the notion that lotteries can be potent tools for social investment and economic growth.

Under the proposed framework, state and municipal lotteries can operate either directly through the state or municipalities or via concessions. Concession contracts are limited to a 15-year term, allowing periodic reviews and adjustments in line with market dynamics, technology advancements, and public interest.

The introduction of PL 5982/2025 signifies a major legislative move towards modernizing and standardizing the lottery industry in Brazil. By aiming to enhance transparency, governance, technological modernization, and societal impact, the bill promises to revolutionize how subnational governments manage lottery activities. If enacted, it is expected to boost public confidence in the system and channel increased funding toward crucial public services nationwide.

However, some voices caution against potential challenges this new framework might face. Critics argue that the implementation phase could be fraught with difficulties, as aligning diverse state and municipal operations under a single framework might encounter resistance or logistical complications. There is also the concern that the 15-year concession term might not be sufficient to attract long-term investment from private operators, potentially stifling innovation and competition.

Despite these concerns, proponents remain optimistic. They argue that PL 5982/2025 could serve as a catalyst for economic growth, driving improvements in public service funding and fostering social development. The anticipated benefits of enhanced transparency and accountability are expected to outweigh any initial hurdles, paving the way for a more robust and equitable lottery system in Brazil.

In conclusion, the proposed PL 5982/2025 marks a significant step towards a more organized and beneficial lottery environment in Brazil, promising a future where state and municipal lotteries contribute more effectively to the nation’s socio-economic welfare.

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