During most of its history, Brazil lived with state and federal lotteries simultaneously. This situation was intensely affected in 1967, with Decree-Law nº 204.
This legislation established that lotteries are an exclusive public service of the Union and prohibited the creation of state lotteries and allowed the ones then in force to be kept as they were, curbing their growth. Several state lotteries were closed and very few remained, as is the case of the Lottery of Rio de Janeiro and Minas Gerais, for example.
This scenario changed radically in 2020, when the STF judged three actions (ADPF 492, ADPF 293 and ADI 4,985) to declare the exclusivity of the lottery for the Union unconstitutional and, consequently, authorize the creation and exploitation of lotteries by the States.
In this way, States can create and operate their own lotteries, which includes authorization to exploit traditional games (drawing numbers), such as instant lottery (scratch cards) and fixed-odds sports betting.
New lottery products will be offered by the States. Consequently, they will have a new source of revenue and will be able to invest more to serve their population. For this reason, since the decision of the STF, several States have enacted laws and domestic acts creating their own lottery and initiated the necessary procedures for its implementation.
Maranhão partnerships and lottery
Ricardo Feijó, lawyer specializing in public law and regulation of games and lotteries, responsible for the legal modeling of the studies presented by NGT selected by MAPA, explains the current situation of the Lotteries and the consequences for the State.
In the scope of State Lotteries, the state that is most advanced in the implementation of its lottery is Maranhão. LOTEMA has a long history of comings and goings. Originally created in 1956, through Law 1,445, it was suspended and reinstated on some occasions, having been extinguished for the last time in 1991, through Law 5,202.
However, after the judgment that took place in 2020 by the STF, the State of Maranhão approved Law No. 11,389, of December 21, 2020, restoring the Lottery of the State of Maranhão and assigning its exploitation to Maranhão Partnerships S/A - MAPA.
Maranhão Partnerships is a state-owned company controlled by the State of Maranhão whose main purpose is the management of state assets to promote the state's social and economic development. For this reason, the law assigned MAPA the task of implementing and operating the lottery.
In this context, MAPA published Public Call No. 01/2021 to obtain studies and projects to determine the technical, economic-financial and legal feasibility to implement and explore lottery games in Maranhão.
Basically, MAPA asked interested parties to present studies to demonstrate the feasibility of the State lottery and to suggest legal and economic models for its exploitation. MAPA chose the studies carried out by the company NGT to carry out the delegation of the lottery activity to the private sector.
In view of this, MAPA published Public Accreditation Notice No. 01/2021 to accredit companies interested in assuming the concession of lottery services in the State of Maranhão for a period of 20 years.
In short, any company that demonstrates its technical, economic-financial and legal capacity and that applies for accreditation with MAPA would be qualified and authorized to operate the lottery for a period of 20 years.
Among the lottery modalities that the individual will be authorized to explore are fixed-odds sports betting and instant lotteries (scratch cards). One of the requirements required to obtain this exploration concession is the payment of an annual grant of at least R$1.5 million (US$ 290,000).
Four groups of companies were qualified and are in the final stage of presenting a business and game plan to begin exploration. However, the process is suspended by decision of the STJ in view of the discussion held within the scope of the State Court of Auditors and the Court of Justice of Maranhão.
The TCE suspended the accreditation, because it understood that it would have very restrictive requirements. This decision was annulled by the Court of Justice of Maranhão in a unanimous decision in May this year. However, the process is suspended by the STJ and awaits a decision by the Superior Court.
Consequences for the State
The biggest consequence of the operation of the Maranhão lottery is the revenue that will be made with the activity. “On the one hand, the State will collect at least R$5 million (US$ 965k) annually, which will be used in the MAPA structure to inspect lotteries and can also be used in other state-owned projects,” explains the lawyer.
On the other hand, the State estimates a total collection of more than R$2 billion in 20 years (US$ 386 million). Of this amount, there will be a transfer of amounts intended for social security financing and for investment in education. “Therefore, the benefits for the State and for the population are evidente,” he concludes.
Thus, everyone anxiously awaits the development of this process and the implementation of the lottery in the State of Maranhão, which can bring great benefits to the State and its population.
Source: O Imparcial
