Law 18,172/2024 was enacted by the mayor of São Paulo, Ricardo Nunes, as a result of Bill 456/24 of the Executive Branch, approved by the City Council as a substitute for the Legislative Branch. With this, the public service of the São Paulo City Lottery is established. According to the law, the operation of any modalities provided for in federal legislation will be permitted.
With the enactment, the city of São Paulo will also be able to explore fixed-odds betting and online games, under the same conditions determined by the Union, through Law 14.790/2023.
The Executive Branch will be responsible for exploring the lottery service directly or indirectly, through concession, permission or authorization. The Executive Branch may delegate the powers of the public service to other bodies or entities of the Municipal Public Administration.
The gross revenue resulting from the sale of municipal lottery products, whether physical or virtual, will be allocated, primarily, to the payment of prizes and the collection of income tax on the prizes.
The amounts to be transferred to the Municipality will be calculated on the remaining balance, after the payment of prizes and the collection of income tax on the prizes, including the percentage corresponding to the variable grant.
The variable grant will be allocated:
I - to the Municipal Social Development Fund – FMD, as referred to in art. 5th of Law No. 16,651, of May 16, 2017, and at least 50% (fifty percent) of the amount corresponding to the variable grant must be allocated for this purpose;
II - to reduce the actuarial deficit of the Social Security Regime – RPPS of the Municipality of São Paulo;
III - the contribution of funds of an accounting nature to establish guarantees for payment of financial obligations assumed by the Administration by virtue of the partnerships referred to in Law No. 16,703, of October 4, 2017.
The Executive Branch, through the Municipal Council for Privatization and Partnerships – CMDP, will regulate the form of distribution of amounts arising from the operation of lottery services, respecting the minimum levels established by Law.
The municipal lottery operators will be solely responsible for setting the amounts for bets, pre-numbered tickets and their respective fractions, scratch-off cards and other lottery products to be charged to bettors, in compliance with the provisions of consumer protection and defense regulations.
The Law also determines that the legal entity operating a municipal lottery modality will forward to the Financial Activities Control Council (Coaf), linked to the Central Bank of Brazil, information about bettors related to the prevention of money laundering and the financing of terrorism.
Law 18,172 states that lottery products will be restricted to circulation within the limits of the Municipality of São Paulo and that the Executive Branch will regulate the provisions of the Law and the delegated municipal body or entity will issue any additional rules that may be necessary.
Studies in progress
In early July, the City of São Paulo approved five companies to prepare studies for the implementation of the municipal lottery. Launched in April of this year, the Notice requires that the selected companies present a scenario diagnosis and surveys of operational, economic-financial and legal-regulatory feasibility.
Hebara, Pay4Fun, BiG Brazil, Consórcio BMR and Cordeiro, Lima Advogados were approved. They will have 60 days to submit the evaluations, which involve traditional modalities, sports betting and online gaming.
Source: GMB
