The municipality of São Gonçalo, in Rio de Janeiro, approved the creation of the Municipal Lottery. The city council approved the bill sent by Mayor Captain Nelson (PL), which establishes the São Gonçalo Municipal Lottery (LOTOSG).
The objective of the project is to establish a public lottery service in the municipality, which could include prediction games, sports predictions, instant lotteries and even online games that offer cash prizes. The approval of the project took place urgently and in a single discussion.
LOTOSG also digital
According to the project, the municipal lottery will feature both land-based and virtual modalities. In this case, within city limits.
The service provision format is through concession, permission, accreditation, bidding and public-private partnerships.
Lottery proceeds will be used to pay prizes, operational expenses for the municipal lottery and investment in areas such as health, education, security and culture.
Service tax
Companies that operate the lottery must pay 2% Tax on Services of Any Nature (ISSQN) on the services provided. According to the project, it is up to the city hall to define the realization and withholding of income tax on the prizes.
Furthermore, the project provides that the concession to operate the lottery will be awarded to companies that meet the required technical, legal and financial requirements, in addition to accepting the remuneration conditions to the municipality. The amount paid to the City Hall will be variable and determined at the time the company signs up to operate betting.
After the law has been sanctioned by the municipal executive, the next steps will involve regulating the service. Finally, the definition of mechanisms to ensure transparency in the management of collected resources.