The STJ (Superior Court of Justice) denied the appeal by the PGE (State Attorney General’s Office) and maintained the decision that annulled the notice for the return of Lotesul (State Lottery of Mato Grosso do Sul).
The First Panel made the decision in a virtual session, held between May 21 and 27, and unanimously denied the appeal.
Lotesul returned to the scene in September 2021. The projection was for revenue of R$9.8 billion in ten years of operation. At that time, parliamentarians from Mato Grosso do Sul sanctioned the law on the subject.
The following year, on August 15, 2022, the State government published a call for proposals for those interested in operating the public lottery service.
However, days later, on August 22, 2022, the company NGT Brasil Tecnologia e Atividades Lotéricas Ltda, based in Curitiba (Paraná), filed a writ of mandamus at the TJMS (Court of Justice of Mato Grosso do Sul).
The court annulled the notice and PGE was awaiting judgment on an appeal at the STJ.
According to a technical study attached to the case being processed at the MS Court of Justice, the State Lottery could earn R$9.8 billion in 10 years of operation.
Of this amount, R$7.5 billion will be distributed in prizes (payout).
Economic impact with the annulment of the Lotesul notice
The annulment of the notice represents a significant impact on the state government’s financial projections. The expectation was that Lotesul would generate substantial revenue, which would benefit the local economy.
The continuation of this legal process, however, creates uncertainty regarding the future of lottery operations. Meanwhile, PGE must analyze other possible legal measures to reverse the decision and resume the Lotesul project.
The long-term prospects depend on how the state government and higher courts handle the next steps in this legal process.