São Vicente prepares creation of municipal lottery
Photo: Arquivo Agência Brasil

The Municipality of São Vicente activated the Foundation for the Development of Arts and Communication (Fundac), aiming to establish a consultancy to help in the process of creating the municipal lottery. According to Diário do Litoral, this would be the first lottery of its kind in Baixada Santista.

Since the end of March, the company has been evaluating the future concession of the service to third parties and will receive 380 thousand reais for the demand. The purpose of the action is to increase the municipality’s revenue without the need to increase or create taxes, tariffs or tributes.

São Vicente City Hall is still analyzing whether it will manage the lottery service on its own or form a partnership with a private company.

The municipal administration decided to launch the lottery based on the understanding of the Federal Supreme Court (STF) in a judgment in 2020. At the time, the STF determined that lotteries are a public service that can be exploited, including by states and municipalities.

In addition, Municipal Law 4,311 of 2022 already establishes that the municipality can explore lotteries directly or indirectly, by public-private partnership, concession, permission, accreditation or any other foreseen means.

Fundac already carries out other similar works in Itaquaquecetuba, Embu das Artes and Poá. In São Vicente, it will have a period of three months, that is, until the end of June to complete the task, but with a possible extension, if necessary.

After the delivery of the technical-operational, economic, financial and legal feasibility works, it will take another 90 days, approximately, for the municipal lottery to acquire the definitive format.

STF decision releasing creation of municipal and state lottery

In September 2020, the Federal Supreme Court (STF) unanimously defined that lottery exploration is not exclusive to the Union. Thus, state and municipal administrations can also create, expand and manage lotteries.

The Supreme Court evaluated actions that considered the Union’s monopoly on the issue of the lottery sector based on a 1967 decree. The law prohibited the launch of new state lotteries and increases in existing ones.

For this reason, state and municipal lotteries relied on injunctions to continue operating, which generated “legal uncertainty”. In the understanding of the ministers of the STF, the Union has the authority to regulate and define the lottery system, but it does not have exclusivity for the exploration of this segment.