The mayor of Caxias do Sul Has Sanctioned the Bill Establishing the City’s Municipal Lottery

January 4, 2023 | Government

The Bill was Unanimously Approved by the Chamber of Councillors
The Executive will regulate the service, through the Secretariat for Management and Finance.
The secretary of Strategic Partnerships stated that the concession should be made to the private sector.

BRAZIL (December 29, 2022) — Following the lottery modalities foreseen in the federal legislation, Caxias do Sul will also offer the municipal public lottery service. This week, Mayor Adiló Didomenico sanctioned the Bill, authored by the Executive and unanimously approved by the City Council, which establishes the activity. The next step will be the regulation of the service, with the Secretariat for Management and Finance issuing the necessary complementary norms.

At the same time, the Administration starts structuring the model for operating the service, which can be done through concession, public-private partnership, permission, accreditations, or other means provided by law. The law also allows for direct exploitation by the Municipality.

The trend, according to the Extraordinary Secretary for Strategic Partnerships, Maurício Batista da Silva, is for the concession to be made. To do so, at least eight months of legal aspects will be required, with consultation and public hearing, analysis by the State Court of Auditors and bidding. The next step will be the structuring of the business by the company that wins the process. The projection is that the beginning of the activity will occur in the first months of 2024.

The approved project establishes that the Municipality will receive a portion of the net result obtained in the operation. This value should be applied in actions aimed at social assistance and the reduction of the city’s vulnerable population. It is estimated that in the fifth year of operation, the service will generate annual gross revenues between R$35 million and R$45 million. The projected net result is between R$ 10 million and R$ 15 million per year, with a portion for the Municipality. “ Studies show that, on average, each Brazilian invests R$ 0.17 per day in games or lotteries ”, said the secretary.

The mayor noted that the measure is important, considering that the resources arising from the lottery will be directly in the city and aimed at improving the quality of life of the vulnerable population. “ It will be a fundamental supplementary income for areas such as social assistance, social security and health ”, he reinforced.

The sanction was accompanied by the deputy mayor Paula Ioris, by the secretaries Gilmar Santa Catharina, of Management and Finance; Paulo Roberto Rosa da Silva, from Public Security and Social Protection; Giovani Fontana, from Housing; Secretary Grégora Fortuna dos Passos, for the Government; and the president of the Social Assistance Foundation, Katiane Boschetti da Silveira. Councilors Adriano Bressan, Olmir Cadore and Velocino Uez also participated.