Brazil’s Supreme Court says feds can’t block state lotteries

Brazil’s national lottery monopoly is history after the nation’s top court declared that individual states had the right to offer their own products.

On Wednesday, the nine ministers on Brazil’s Supreme Federal Court unanimously ruled that while the Union (federal government) has the right to pass laws that govern lottery operations, there’s nothing in the law that prevents states from operating their own lotteries under these rules.

The Court was responding to a suit filed by the state of Rio de Janeiro, which took exception when the federal government ordered the state lottery to shut down a couple years ago. The state estimated that this would put a major hole in its operating budget and decided to take the feds to court.

In 1967, the federal government approved Decree 204/67, which granted it the exclusive right to operate lotteries, under the guise of preventing “the emergence and proliferation of prohibited games.” But this decree didn’t formally repeal a 1944 decree that permitted both state and federal lotteries.