In Manaus, city councillor Dione Carvalho has presented a bill to establish the Municipal Lottery of Manaus. The proposal allows for the operation of all lottery modalities permitted by federal legislation, both in-person and online, with circulation restricted to the limits of the capital of Amazonas.
The bill stipulates that at least 60% of the revenue must be allocated to prize payouts and income tax, while the remaining funds should finance areas such as health, education, public safety, sports, and culture.
Regulation, oversight, and monitoring of the lottery would be the responsibility of the Municipal Secretariat of Finance, Planning, and Information Technology (Semef). According to Carvalho, the measure “increases municipal revenue without burdening the population with new taxes or raising existing ones.”
Municipal Lotteries: Barueri
Meanwhile, in Barueri, in the São Paulo metropolitan area, the City Council approved the creation of the Municipal Lottery of Barueri on August 12, through a proposal sent by Mayor Beto Piteri (Republicanos). The expectation is that the proceeds will go toward public services such as healthcare, social assistance, and the Social Solidarity Fund.
“The municipal lottery funds will strengthen the budget of essential services and bring more benefits to the population,” stated Piteri in a message to the City Council.
Are Municipal Lotteries Illegal?
ADPF 1212 is a legal action requesting the immediate suspension, via injunction, of municipal laws and decrees that created lotteries in cities such as São Vicente, Guarulhos, São Paulo, Campinas, Poá, Belo Horizonte, Porto Alegre, Anápolis, Miguel Pereira, among others. According to the Solidariedade political party, these local laws violate the federal system, create unfair competition with federally licensed operators, and undermine national tax collection.
The initial petition also points out that many of these municipal lotteries operate nationwide, including via the internet, which would undermine any local interest — the only valid justification for municipal involvement in this area.
If the Supreme Federal Court (STF) accepts the opinion of the Attorney General’s Office (AGU) and rules in favor of the ADPF, the result could be the shutdown of all currently operating municipal lotteries in the country, concentrating the market in the hands of operators licensed by the Secretariat of Prizes and Betting (SPA).
SPA’s federal license fee is R$30 million, a stark contrast to municipal licenses, which range from R$5,000 to R$100,000.With the AGU’s opinion submitted, the case enters its final phase in the STF. It is now up to Justice Nunes Marques to decide whether to grant the injunction or refer the matter directly to the full court for judgment. The outcome could redefine the framework for lottery operations in Brazil and limit municipal involvement in this billion-real sector.
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