Mayor Ricardo Nunes enacted this Thursday (25) Law 18.172, which establishes the São Paulo City Lottery. It will be allowed to explore any modalities provided in the federal legislation, including sports betting and online games. Studies for the operation model are being conducted by Hebara, Pay4Fun, BiG Brazil, BMR Consortium, and Cordeiro, Lima Lawyers.
The Mayor of São Paulo, Ricardo Nunes, enacted Law 18.172/2024, resulting from Executive Bill 456/24, approved by the City Council as a substitute from the Legislature. Thus, the public service of the São Paulo City Lottery is established. According to the law, the exploration of any modalities provided in the federal legislation will be allowed.
With the enactment, the city of São Paulo will also be able to explore fixed quota betting and online games, under the same conditions determined by the Union, through Law 14.790/2023.
The Executive Power will be responsible for the lottery service operation, either directly or indirectly, through concession, permission, or authorization. The Executive may delegate the public service competencies to other bodies or entities of the Municipal Public Administration.
The gross revenue from the sale of municipal lottery products, physically or virtually, will be primarily allocated to the payment of prizes and the collection of income tax on the winnings.
Regarding the remaining balance, after the payment of prizes and collection of income tax on the winnings, the amounts to be transferred to the Municipality will be calculated, including the percentage corresponding to the variable grant.
The variable grant will be allocated:
I - to the Municipal Social Development Fund – FMD as per Article 5 of Law No. 16.651, dated May 16, 2017, with at least 50% (fifty percent) of the value corresponding to the variable grant to be allocated to this purpose;
II - to reduce the actuarial deficit of the São Paulo City’s Own Social Security System – RPPS;
III - to contributions in accounting nature funds for the establishment of guarantees for the payment of pecuniary obligations undertaken by the Administration due to partnerships as per Law No. 16.703, dated October 4, 2017.
The Executive Power, through the Municipal Council for Privatization and Partnerships – CMDP, will regulate the distribution of values derived from the lottery services, respecting the minimum thresholds established by the Law.
The exclusive responsibility for setting the values of bets, pre-numbered tickets and respective fractions, scratch cards, and other lottery products to be charged from bettors will lie with the municipal lottery operators, observing the provisions of consumer protection and defense norms.
The Law also stipulates that the legal entity operating the municipal lottery modalities will send 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 terrorism financing.
It is expressly stated in Law 18.172 that lottery products will have restricted circulation within the limits of the Municipality of São Paulo and that the Executive Power will regulate the provisions of the Law and the municipal delegate body will issue the necessary complementary norms.
Ongoing studies
At the beginning of July, the São Paulo City Hall approved five companies to conduct studies for the implementation of the municipal lottery. Launched in April this year, the Notice stipulates that the selected companies present diagnostics of scenarios and assessments of operational, economic-financial, and legal-regulatory feasibility.
The approved companies are Hebara, Pay4Fun, BiG Brazil, BMR Consortium, and Cordeiro, Lima Lawyers. They have 60 days to deliver the evaluations, which involve traditional modalities, sports betting, and online gaming.
Source: GMB
