The bill was presented last week and aims to explore lottery activities in the municipality, based on the 2020 Supreme Federal Court (STF) decision that abolished the Union's monopoly on these activities.
The government's plan includes launching municipal betting houses and granting the service to private companies, known as "bets." The city intends to explore all types of betting allowed in the country, including online sports betting, both directly and indirectly.
Since the STF decision, several states, such as Rio de Janeiro, Paraíba, and Paraná, have passed their own legislation to explore lotteries. In São Paulo, the proposed model allows the city to launch municipal betting houses, online platforms, or grant the service to the private sector, charging fees and taxes.
According to Nunes, the gross revenue from the sale of municipal lottery products, whether physical or virtual, will be primarily allocated to prize payments, income tax collection on the prizes, and operating and maintenance expenses. The profit will be directed to the Municipal Social Development Fund (50%), the reduction of the Social Security deficit, and the payment of precatory debts.
The bill is based on studies conducted after the launch of Public Call Notice 002/2024, which opened the possibility for interested parties to conduct technical, operational, economic-financial, and legal-regulatory feasibility studies for the implementation and operation of lotteries and betting in São Paulo.
“The creation of a municipal lottery service has the potential to, at the same time, enable auxiliary financing of public policies through the collection of lottery resources, as well as allowing the supervision and control of the activities of municipal lottery operators in favor of safety and security of São Paulo citizens,” says the justification contained in the project to create the São Paulo City Lottery.
Source: GMB
