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Last Wednesday, January 18th, the city of Porto Alegre released, through an extra edition of the Official Gazette, a decree that establishes the norms for the operation of the municipal lottery. According to the document, half of the net profits will be used to finance public transportation.

Furthermore, 35% of the resources will be allocated to initiatives and projects of urban mobility policies; and 15% for accessibility and inclusion projects for people with special needs or the elderly.

Lottery modalities include draws with numbers and predictions in sports betting – one of the most engaged modalities in the country. According to the decree, a management commission led by the Municipal Secretariat for Economic Development and Tourism will be created to establish formats and authorize lottery operators.

The publication of the decree continues the process of creating the municipal lottery, a bill sanctioned in August last year by Mayor Sebastião Melo. The next pending step is the preparation of a concession notice so that a private company assumes the right to exploit the service.

The law establishes that only legally established companies, with headquarters and administration in the country, may be authorized to operate lottery modalities. The City Hall, directly or through a partnership, concession or permission, must implement security measures to prevent adulteration or fraud with tickets.

Cities that are already investing in a municipal lottery

In July 2021, the City Council of Guarulhos, in São Paulo, approved the creation of a municipal lottery. Poá, an inland city in the same state, also has this type of draw to raise funds for public finances.

Municipal lotteries can help the regions where they are established by generating resources for various social projects. The modality is very successful in Brazilian society and brings economic movement, entertainment and new opportunities for regional growth.