The City Council of Tatuí, in the interior of São Paulo, approved on Monday (2) the bill that authorizes the creation of the municipal lottery. The proposal by Mayor Professor Miguel (PSD) received 10 favorable votes during the legislative session.
The approved text allows the municipality to explore lottery and betting games regulated by federal legislation. The administration may operate directly or grant the service to specialized companies.
Responsibility for the management and supervision of the municipal lottery
The City Hall will be responsible for regulating, controlling and monitoring the operation of the municipal lottery. The municipality may transfer the operation to private companies through a concession, in accordance with current federal regulations.
The Secretariat of Government and Institutional Relations will oversee the activities. In addition, the agency may enter into partnerships with public or private entities to ensure compliance with the established rules.
The municipal internal control will carry out regular audits of lottery operations. These checks will seek to ensure transparency and legality in the use of the resources obtained.
Granting process and operating period
The operating company will be selected through a competitive bidding process. The process will follow the rules of Federal Law No. 14,133/2021, known as the New Law on Public Tenders and Administrative Contracts.
The concession contract will be valid for 20 years. After this period, renewal will depend on the municipality’s assessment of the public interest.
Destination of the funds raised
The law determines that the amounts obtained from the municipal lottery are directed primarily to four areas:
- Public health
- Culture and sports
- Education
- Social help
Lottery services will pay Tax on Services of Any Nature (ISS). The rate will be 5% on the gross revenue of the operation, as established by municipal tax legislation.
The executive branch will have 60 days to regulate the law after its official publication. At the time of writing, the mayor had not yet sanctioned the text approved by the Chamber.
Processing and voting in the City Council
The City Council reported that the project followed all regulatory procedures. First, the Attorney General’s Office analyzed the proposal, which was then submitted to three permanent committees: Constitution, Justice and Drafting; Public Works and Administration; and Economy, Finance and Budget.
The committees’ opinions were approved in plenary. The project then underwent two votes, both with 10 votes in favor and six against.
Thus, the following councilors voted in favor: Rosana Nochele (PSD), Micheli Vaz (PSD), Gabriela Xavier (Podemos), Alex Mota (União Brasil), Paulinho Motos (PSD), Ricardo Trevisano (Solidarity), Vade Manoel (Republicans), Eduardinho (Republicans), Elaine Miranda (PL) and Leandro Magrão (MDB).
Voted against: Bossolan Radio (PL), Marcio Sta Rita (PP), Mauricio Couto (PP), Cintia Yamamoto (PP), João Éder (União Brasil) and Kelvin (PT).
City Hall’s position on the municipal lottery project
The Tatuí City Hall clarified that the law does not create betting houses or municipal games. According to the administration, the objective is to regulate lottery activities already authorized by federal legislation.
The city government stated: “The objective is to retain the taxes collected for the municipality, since, currently, the tax from this activity does not remain in the municipality – part of it goes to Brasília and the other part, unregulated, is not paid.”
The municipal administration emphasized that it will invest the generated resources exclusively in social programs. Therefore, the population will receive benefits with improvements in the priority areas defined by law.
On the other hand, the city government emphasized that several municipalities in São Paulo have already adopted similar measures. The creation of the municipal lottery respects constitutional principles and current federal and state regulations.
Legal aspects of the municipal lottery
The g1 portal consulted the Supreme Federal Court (STF) about the legality of municipal lotteries. The STF’s press office responded: “if the aforementioned law is questioned in the STF, the court may issue a statement.”
In 2020, the Supreme Federal Court ruled that states can manage their own lotteries. The decision established that interested states must follow federal regulations to operate the service. However, the court did not specifically address municipal lotteries at that time.
