Oversight of the lottery’s activities will be carried out by the Municipal Department of Finance, either directly or through designated teams and entities, depending on the operational model adopted.
According to the enacted law, both physical and online channels will be permitted for accepting bets and selling municipal lottery tickets.
The decree provides for the following lottery modalities:
- Passive lottery: in which the bettor purchases a pre-numbered ticket, either in printed or digital form;
- Numerical prognostic contest: where the bettor attempts to predict the numbers drawn in a given contest;
- Specific prognostic lottery: established by Federal Law No. 11.345 of September 14, 2006;
- Sports prognostic lottery: in which the bettor predicts the outcome of sporting events;
- Instant-result lottery: which immediately reveals whether the bettor has won a prize;
- Fixed-odds betting: a system based on real or virtual events in which the potential payout is defined at the time the bet is placed.
The decree authorizes the service to be operated by the private sector through a concession obtained via public tender. Bidders must demonstrate prior experience in the implementation, management, or operation of betting or lottery systems.
City officials stated that the municipal lottery is expected to raise approximately R$75 million (US$13.6m) annually. According to the project’s justification, the initiative stems from the need to increase municipal revenues.
Funds generated from the operation will be allocated to:
- payment of prizes and income tax;
- operational expenses;
- investments in priority municipal projects, especially in public safety, healthcare, and social assistance.
Unclaimed prizes within 90 days of the results being announced will be considered expired, and the corresponding amounts will revert to the municipal treasury.
Campaigns to address problem gambling
The decree stipulates that the operation of the municipal lottery must adhere to Responsible Gaming principles, ensuring:
- protection of minors and vulnerable individuals;
- educational campaigns on the risks of compulsive gambling;
- self-exclusion tools for players wishing to limit participation;
- support for treatment and recovery programs for problem gamblers;
- clear information about odds of winning and costs associated with betting.
In a statement to g1, the city government said that both the municipal law and decree comply with ADPF 492 and 493, and follow the modalities set forth in Federal Law 13.756/18.
“The municipality prioritized consumer rights, Responsible Gaming, and oversight to preserve public interest and legality. The lottery modalities to be implemented will be evaluated through internal studies developed within the City Hall,” the statement added.
Source: GMB
