João Doria wants to launch the São Paulo State Lottery
Photo: Rovena Rosa / Agência Brasil

The governor of São Paulo, João Doria, sent a proposal to the Legislative Assembly aiming at the creation of a state lottery to fund social actions. From this Bill of Law (PL), the governor intends to strengthen the state’s coffers in the last year of his term.

In the text sent to state deputies, the government defends that the “São Paulo State Lottery” has the aim of “expanding funding sources for important social policies” aimed at individuals in a condition of social vulnerability.

In addition to João Doria, other governors want to launch state lotteries

In 2020, the Federal Supreme Court (STF) ended the Federal Government’s monopoly to operate lottery services, providing opportunities for states and municipalities to also explore games in order to increase their sources of income.

Since then, the states of Maranhão, Mato Grosso, Minas Gerais and Rio de Janeiro have publicly expressed their intention to develop and launch their own lotteries. In 2020 alone, the Union managed to collect more than R$ 16 billion with the games.

About 50% of this amount was transferred to programs in the education, public safety and health sectors. The insertion of the states in this market even causes concern to the Federal Government, which projects a reduction in revenues due to the emergence of competing lotteries.

In the same bill, which still needs to be analyzed and voted on by the Legislative Assembly, João Doria asks for authorization to request loans from national banks of up to five billion reais to invest in security, education, urban mobility, highways and infrastructure works to health.

Historic decision of the STF

In a session on September 30 of last year, the Supreme Court unanimously decided that the exploitation of lotteries is not exclusive to the Union. Until then, state lotteries continued to operate thanks to injunctions, which caused “legal uncertainty”.

For the STF ministers, the Union has the authority to regulate and establish the lottery system, but not exclusivity to explore this sector.