The government of Caraguatatuba, a city located in São Paulo, has sent a bill to the City Council that creates the Municipal Lottery. The proposal aims to generate more resources for investments in areas such as health, social development, the environment and the construction of affordable housing in the city.
According to Mayor Mateus Silva, the initiative follows a decision by the Federal Supreme Court (STF), which allows states and municipalities to operate lottery services, as long as they respect the general rules defined by the Union.
“It is an opportunity to transform a service that already exists in other places into a direct benefit for the population of Caraguatatuba”, explained the mayor.
The proposal allows the municipal lottery to be managed by the administration itself or by a company, which will be chosen through a public concession, following strict rules of security, transparency and social responsibility.
Details of the municipal lottery proposal
If implemented, the service must be offered both online and at authorized land-based locations. Companies interested in operating the lottery must demonstrate technical and financial capacity and comply with all safety standards, in addition to ensuring measures to prevent gambling addiction.
Therefore, most of the money will go towards paying premiums and mandatory taxes.
The remaining amount will be used to fund public projects and services, such as improvements to the municipal health system, construction of affordable housing, social development actions, and environmental preservation and sustainability projects.
The project also foresees that the Municipal Finance Department will be responsible for overseeing the entire operation of the lottery, with requirements for reports, audits and constant monitoring.
Therefore, the rules for draws, payments, deadlines and even advertising must be defined by decree after the law is approved. In addition, these requirements must prioritize transparency and the protection of bettors.
The bill was sent to the City Council for analysis. If approved, the municipal administration must begin the procedures to regulate the operation and open the service concession process.
“What we are looking for is a source of resources that helps invest in what really matters, health, housing and quality of life for the families of Caraguatatuba,” said Mayor Mateus Silva.
Lotteries in other cities
Since the approval by the Federal Supreme Court in 2020, some Brazilian municipalities have already implemented lotteries as a way of raising funds.
In São Paulo, cities such as São Vicente and Guarulhos have already had the model since 2022 and 2021, respectively. In Rio de Janeiro, the city of Cabo Frio is an example. While Maceió (AL), Curitiba (PR), Aracajú (SE) and Salvador (BA) are other examples of municipalities that also have lotteries.
