Last Wednesday (26) the São Paulo City Council approved the creation of its Municipal Lottery.
The measure’s main purpose is to strengthen the city’s finances. This is because there will be countless advantages for both the citizen and the Public Administration.
São Paulo municipal lottery with new recipes and social benefits
The approval of the lottery was only in the first round, but its creation could benefit the city. Firstly, it seeks to raise funds for social projects and infrastructure improvements within the city of São Paulo.
This approach, based on the understanding of the Federal Supreme Court (STF), allows municipalities to create their own lotteries, expanding sources of revenue and directly benefiting the population of São Paulo. Therefore, some councilors highlighted this position when defending the project.
“The legislation that takes care of lotteries is federal legislation, but a decision by the Federal Supreme Court, broad so that both states and municipalities can manage their own lottery and, like money, be invested in public policies”, commented the councilor Fábio Riva (MDB), government leader.
According to the voted proposal, the proposed model includes:
- Municipal Betting Venues. The city hall will be able to launch physical betting shops in strategic locations in the city.
- Online Platforms. In addition, there will be the possibility of operating online betting platforms.
- Concessions to Private Initiative. The private sector will be responsible for the service, with the collection of grants and related taxes.
Allocation of Resources
According to the text, the gross revenue from the sale of municipal lottery products will primarily be used to:
- Payment of Premiums. The winners will receive their prizes.
- Income tax. Income tax on the prize will be collected.
- Costing and Maintenance. Part of the resources will be allocated to funding and maintenance expenses.
Therefore, the profit obtained will be for:
- Municipal Social Development Fund (50%). Contribute to social projects.
- Reducing the Social Security Deficit. It will help balance pension accounts.
- Payment of government debts (Precatórios). Used to pay off legal debts.
It is worth noting that the project was approved symbolically. In other words, without a roll call vote. Now, the matter goes to the second round of voting. Thus, the text was forwarded to councilors by São Paulo City Hall.
