Brazil’s green lottery review continues as lawmakers debate a betting ban

Brazil's green lottery proposal is undergoing legislative scrutiny while the federal government seeks congressional support for a separate prohibition on fixed-odds betting. The measures concern different legal products and are advancing along separate legislative paths. Their parallel progress has brought environmental funding, lottery policy and the future of online betting into the national political debate.

On October 27, a report said Pedro Lupion, rapporteur in the Chamber of Deputies' Constitution and Justice Committee (CCJC), had submitted an opinion recommending that Bill 1,587/2021 and its amendments be considered constitutionally acceptable, legally sound and technically adequate. However, the Chamber's public tracking page continued to list the bill as awaiting the rapporteur's opinion when checked. The reported recommendation should therefore not be confused with a formally recorded committee decision.

Green lottery proposal remains under review

Bill 1,587/2021 was introduced in April 2021 by federal deputy Evair Vieira de Melo. It would authorize the federal Executive to establish a numerical lottery originally named “Loteria Rural Verde”. A committee amendment has also referred to the proposed product as “Loteria Verde”. Neither name represents an operating lottery established under this bill.

The proposal has already passed through earlier committee stages. The Chamber's Environment and Sustainable Development Committee approved a version with amendments in 2021. The Finance and Taxation Committee subsequently approved the bill and relevant amendments in August 2024.

The proposal then moved to the CCJC for constitutional and legal review. This stage is important because the committee must assess whether the legislative text meets the applicable legal requirements. Any favourable recommendation from the rapporteur would represent a procedural development rather than final enactment.

The committee must still complete its review under the applicable legislative process. Until the bill completes the required stages and becomes law, it does not authorize the federal government to launch the proposed lottery.

Proposed revenue allocation would support environmental programmes

An amendment approved by the Environment and Sustainable Development Committee outlines a proposed distribution of lottery receipts. Under this arrangement, 60% would go towards prizes, 20% would cover operating costs and the remaining 20% would be allocated to the National Environment Fund.

The environmental allocation is intended to support the Federal Payment for Environmental Services Program. This initiative provides a policy framework for encouraging activities that conserve or restore environmental resources. The proposed funding model would connect lottery revenue with environmental objectives rather than directing all proceeds towards prizes and operational expenses.

If enacted in its current form, the allocation could provide an additional funding channel for environmental initiatives. It would also establish a defined relationship between the proposed lottery's revenue and public spending priorities. The practical impact would depend on the final legislation, the rules governing fund allocation and the projects eligible for support.

These potential benefits remain conditional. The allocation is part of a legislative proposal rather than an established source of public revenue. The final percentages and funding arrangements could also change during further consideration.

Betting ban follows a separate legislative path

The green lottery bill is distinct from Provisional Measure 1,394/2026, issued by President Luiz Inácio Lula da Silva on September 25, 2026. The measure prohibits the operation, offer, intermediation and advertising of fixed-odds betting across Brazil. Its scope includes sports betting and online games, with restrictions covering physical and digital channels as well as operators based outside Brazil that offer such services to people in the country.

The distinction between the two legislative initiatives is significant. The government's explanation of the provisional measure states that other lottery modalities authorized by law are not covered by the fixed-odds betting prohibition. The proposed green lottery is a separate numerical-lottery concept and would require its own legislative authorization.

Consequently, progress on Bill 1,587/2021 would not automatically amend or narrow the restrictions introduced by the betting measure. Likewise, the betting prohibition does not itself approve the proposed environmental lottery.

On October 27, Institutional Relations Minister José Guimarães was reported as saying the government would seek congressional support for the betting prohibition alongside measures concerning public security and transport. The effort adds political urgency to the betting debate, but it does not change the separate procedural requirements facing the green lottery proposal.

November deadline puts the betting measure on the clock

The National Congress tracking page lists November 23, 2026, as the current deadline for deliberation on Provisional Measure 1,394/2026. It also lists the measure as awaiting installation of its joint committee, with the urgency regime scheduled to begin on November 9.

The November 23 date is an important point in the legislative calendar. However, the precise legal consequences of that deadline must be assessed under the constitutional rules governing provisional measures, including any applicable extension. The date should not be treated in isolation from the formal legislative timetable.

The measure has already had operational consequences. Under the government's transition schedule, authorized betting websites and applications were required to become unavailable from October 6. The Ministry of Finance also outlined procedures for returning balances held by customers. These implementation steps demonstrate that the measure has moved beyond a policy announcement, even though its longer-term legislative status remains relevant.

Congress retains a central role in determining the measure's future. The mixed committee must consider the text before the process proceeds through the two chambers. Lawmakers may support the measure, amend it or reject it, subject to the applicable constitutional and parliamentary rules.

Supreme court hearing adds another layer of scrutiny

The Supreme Federal Court has scheduled a public hearing for November 3 to examine the effects of Provisional Measure 1,394/2026. Justice Luiz Fux called the hearing, which is expected to involve representatives of public institutions, associations and football clubs.

The discussion forms part of the broader legal challenges surrounding the restrictions. The hearing is intended to gather information and perspectives on the measure's effects. It is not, by itself, a final judgment determining the constitutional validity of the prohibition.

The legal proceedings are relevant to operators and other organizations affected by the restrictions. Sports clubs and sponsors may also be affected by the loss of betting-related commercial activity. The outcome of the judicial process remains distinct from Congress's responsibility to consider the provisional measure.

For the green lottery proposal, the immediate question is different: whether the bill can complete its committee review and progress through the legislative process. Its environmental funding provisions should therefore be assessed independently of the litigation surrounding fixed-odds betting.

Conclusion

Brazil's green lottery proposal presents a potential link between lottery receipts and environmental funding. Its proposed allocation would reserve a share of revenue for the National Environment Fund and environmental services, but those provisions remain dependent on legislative approval and the final form of the bill.

The separate betting prohibition has more immediate operational implications, while its longer-term status depends on congressional consideration and the relevant legal procedures. The two developments may influence the wider discussion about gambling-related policy in Brazil, but they should not be treated as a single legislative initiative.

The most important distinction is between a reported recommendation, a formally approved bill and an enacted law. A favourable opinion attributed to a rapporteur does not create a lottery, guarantee environmental revenue or change the existing betting restrictions. The next steps will depend on formal legislative records, committee decisions and the legal process governing the provisional measure. Until those matters are resolved, both developments should be reported according to their verified procedural status rather than anticipated outcomes.

FAQs

What is Brazil's green lottery proposal?
It is a legislative proposal under Bill 1,587/2021 that would authorize the federal Executive to establish a numerical lottery with a proposed allocation of revenue towards prizes, operating costs and environmental funding.

Who introduced Bill 1,587/2021?
Federal deputy Evair Vieira de Melo introduced the bill in April 2021.

What is the proposed lottery called?
The original bill names the proposed product “Loteria Rural Verde”. A committee amendment has also used the name “Loteria Verde”.

How would lottery receipts be allocated?
The proposed distribution assigns 60% to prizes, 20% to operating costs and 20% to the National Environment Fund.

What would the environmental allocation support?
The proposed environmental share is intended to support the Federal Payment for Environmental Services Program.

Has the green lottery been approved?
No final enactment is established by the available legislative record. The bill remains subject to the required legislative process and its public tracking page has continued to show the constitutional review stage awaiting the rapporteur's opinion.

How is the green lottery different from the betting ban?
The green lottery concerns a proposed numerical lottery intended to support environmental funding. The separate betting measure prohibits fixed-odds betting activities and their advertising across Brazil.

What is Provisional Measure 1,394/2026?
It is a measure issued on September 25, 2026, that prohibits the operation, offer, intermediation and advertising of fixed-odds betting in Brazil.

Why is November 23, 2026, important?
The date is listed as the current deliberation deadline for the betting measure on the National Congress tracking page. Its legal implications depend on the applicable constitutional rules and any extension.

What is scheduled at the Supreme Federal Court on November 3?
A public hearing has been scheduled to examine the impacts of the betting measure. It will gather views from relevant institutions and affected organizations but is not itself a final ruling on the constitutional challenges.