Brazil Debates Municipal Lottery
Author:
Jacob McKenzie
In Brazil, the government is debating whether to introduce a new municipal lottery for Anápolis, known by the name Lotan. The municipality is interested in creating its own lottery within the legal lottery framework that exists within the federal law. The first step was to create a complementary bill for the lotto. It was approved by Anápolis’s chamber in an extraordinary session. Domingos Paula (PV) and Jakson Charles (PSB) wrote the text.
Brazil’s municipality Anápolis may be the next to open its own lottery.
?Mateus Campos Felipe/Unsplash
Next Steps for Creation of Lotan
If Lotan is to become a reality, there are several more steps that need to be orchestrated first. The original text created by the president and vice president of the municipal government chamber was voted on positively. There was only one vote against in a session of 21 councilors, which is a good sign for its future.
It is as of yet unclear whether Lotan would be operated by the Executive Branch in a direct or indirect capacity. The law gives some leeway to Brazilian lottos to be operated by local authorities, though all must abide by the federal legal framework within their own operations. This matter is still to be determined.
Overall, the Executive Branch would still have some part in setting up the lottery. That includes authorizing Lotan to operate legally, accrediting its supervisors, and possibly managing the entire service unless another provider is designated. That provider could be a public entity, the local authority or another group.
In line with Brazil’s lottery laws, the bill for Lotan states that revenue from the lottery would be collected to pay its operating expenses. It would also be divided up into income tax and an additional tax for Social Security within the municipality. Further funds would be designated for the development of local sports, culture and tourism projects.
Anápolis is not alone in seeking to create a lottery. Many Brazilian municipalities have already started their own lotteries in order to fund similar public projects, and to great success. Indeed, Anápolis is creating their lottery in part because other projects have had such a positive local response and provided substantial income tax revenue.
The matter of funding social security in Brazil has been an ongoing issue, so for some involved in the project, this lottery could be an ultimate solution by creating new and sustainable income. They therefore argue that those against creating a lottery are being shortsighted and not offering up enough reasonable solutions of their own to protect pensions.
Mayor Roberto Naves is said to have already been consulted and apparently gave a green light to continue debate on the bill in the legislature. It will next be discussed by the permanent commissions office.
Other Brazilian State Lotteries Thrive
Meanwhile in other parts of Brazil, municipal lotteries have been growing since 2020. That year, the Supreme Federal Court ruled that such lottery activity was legal in order to prevent lotteries from being a monopoly of any one operator nationwide.
The creation of this law, and its resulting lotteries, has been considered an act for the public good, as it has allowed for many new areas to create funding for public works. Several sectors have been badly underfunded, even since before the pandemic, but Covid-19 exacerbated issues around the health sector in particular.
The law directly reversed a law created in 1967, which made all lottery activity the business of the federal government, rather than allowing for separate, smaller, local lotteries. There are now many in operation, including the Mineira Lottery and Bagé Municipal Lottery (LMB).
