According to the document, the initiative arises from the need to expand the municipality’s financial resources, supported by legislation that allows the operation of lotteries by all levels of government.
The text highlights that, given the recent bidding process launched by the Government of the State of São Paulo for the concession of the State Lottery, it is foreseeable that state sales channels will be installed in Piracicaba, which would lead to the outflow of local resources to the state treasury. With the institution of the Municipal Lottery, the betting revenues would remain in the city, directly benefiting its population.
The bill also draws attention to the ongoing discussion in the National Congress regarding Bill No. 2.234/2022, which proposes the regulation of casinos, jogo do bicho, and bingo halls nationwide under private operation.
If approved, it could reduce the attractiveness of lottery services in municipalities that have not previously structured their own operations. In this scenario, Piracicaba risks losing prominence and institutional space in an expanding sector.
In the State of São Paulo, some cities have already implemented their municipal lotteries, such as São Vicente, Poá, Embu das Artes, Agudos, and Botucatu. Still in early stages, these experiences remain under market studies, testing, and product adaptation, but demonstrate a growth trend.
The bill’s justification also presents projections for potential revenue in Piracicaba. Based on parameters used by Caixa Econômica Federal, it is estimated that the municipality could raise around R$ 75 million (US$14m) annually through the Municipal Lottery.
These non-tax revenues could be applied more flexibly and strategically, without burdening taxpayers and without depending solely on intergovernmental transfers, ensuring greater financial autonomy for the municipality.According to Caixa’s own data, in 2024 national lotteries raised more than R$25.9 billion (US$4.75bn), of which R$10 billion (US$1.85bn) were allocated to social areas such as sports, culture, security, and health.
The relationship between lottery revenues and Brazil’s GDP is estimated at 0.22%, a figure expected to grow with the regulation of fixed-odds betting starting in 2025.
For Piracicaba, with a GDP of R$ 34 billion (US$6.3bn) in 2021, this index allows for an estimate of the city’s revenue potential.
“The approval of this project will be a milestone of strategic vision and responsibility toward future generations, leaving a positive legacy that transcends administrations and governments,” concludes the bill’s justification.
Source: GMB
