The City of Chapecó wants to create a public lottery service. Authored by Mayor João Rodrigues, the proposal determines that lottery funds will go to the promotion of sports and leisure, in addition to the Municipal Pension Fund. The proposal is before the City Council of the Santa Catarina city.
Once approved, the law will authorize the operation of the public municipal lottery service in Chapecó, either directly or under a concession regime, for a period of 20 years.
“The lottery service will be made available to the betting public through digital sales channels and physical points of sale, with support and assistance available,” says the text.
The initiative is unprecedented in Santa Catarina
According to Chapecó’s Government Secretary, Adair Niederle, the inspiration for the proposal came from the São Paulo municipalities of São Vicente, Louveira and São Paulo. This initiative is unprecedented in the state. “We currently have federal lotteries, in which the resources go to the Union. With the municipal lottery, the resources will stay here,” he highlighted.
Along with the project, Mayor João Rodrigues sent a message to the Legislature with other considerations about the initiative. However, the proposal includes an annex with a statement from the Public Prosecutor’s Office of the State of São Paulo regarding the legality and constitutionality of the operation of the lottery service by the municipality of Louveira (SP).
“The [Chapecó] Finance Department will be responsible for providing, regulating, monitoring and supervising the service. Companies interested in the concession must meet the requirements for qualification, security and responsible management of the game. The funds raised will be used primarily to pay prizes and taxes,” explained the mayor.
The remaining balance is scheduled as follows:
● 70% to promote sport and leisure in the municipality.
● 30% to reduce the pension deficit of the Social Security Regime (RPPS)
“The project also provides for rules on unclaimed prizes, pricing of lottery products and mechanisms to prevent money laundering. According to the project, the circulation of products will be restricted to the municipality, and additional regulations will be defined by Decree of the Municipal Executive Branch,” reads the message signed by João Rodrigues.
According to the City Hall, if the law is approved by the Chapecó City Council, regulations will be issued later. Soon after, the service will be granted, which will be overseen by the city’s Finance Department.