The São Paulo City Council received the bill from the mayor of São Paulo, Ricardo Nunes (MDB), for the creation of the public municipal lottery service. Therefore, the plan is not just to create lotteries, but to launch municipal betting houses to provide a municipal bet service.
Therefore, the city hall’s intention is to play sports online, no matter whether it is directly or indirectly. Then, private companies will receive concessions to carry out all actions.
Municipal lottery can be created according to STF
This initiative is based on the understanding defined by the Federal Supreme Court in 2020.
At that time, the Court decided that the exploitation of lotteries is not exclusive to the Union, opening the way for states and municipalities to create their own lottery services. All of this, of course, under federal government regulation.
So, since this announcement, several states have approved their own legislation in this regard, as is the case of Rio de Janeiro and Paraná. In the capital of São Paulo, the proposed model will allow the city hall to:
- Launch municipal betting houses
- Online platforms
- Grant the service to the private sector, charging grants and related taxes
Regarding the allocation of resources, the gross revenue from the sale of municipal lottery products, whether by physical or virtual means, will primarily be used for:
- Payment of premiums
- Collection of income tax levied on the prize
- Costing and maintenance expenses
But the profit obtained will be allocated to the Municipal Social Development Fund (50%), the reduction of the Social Security deficit and the payment of court orders.
Therefore, the municipal lottery aims to facilitate the financing of public policies through the collection of lottery resources.
Furthermore, it will still be possible to monitor and control the activities of municipal lottery operators and this will make the game safer for the citizens of São Paulo.
