Brazil: Salvador City Council reviews bill to create municipal lottery

Key Points
- Salvador City Council begins reviewing bill to create municipal lottery
- Proposal authorises direct operation or concession by the municipality
- Remaining revenues would support health, education, culture and sports
The City Council of Salvador has begun deliberations on Bill No. 423/2025, which was submitted by the city Mayor Bruno Reis.
The proposal outlines the creation of a municipal lottery to be either operated directly by the city or through a concession model.
Discussions happened in a joint session of council committees with a full vote expected in the chamber the following week.
If approved, the measure would seek to establish a new framework for lottery activity at the municipal level, with provisions to ensure oversight and allocation of resources.
According to the draft, the gross revenue generated by the lottery would first cover prize payouts and then tax obligations.
The remaining funds would then be directed to priority areas, including health, education, security, social assistance, culture and sports.
Good to know: Brazil’s Federal Government reallocated lottery tax revenue to healthcare programmes
Mayor Reis defended the initiative as both a funding mechanism and a tool for responsible gaming.
“When the municipality assumes the leadership in supervising betting, the proximity with the bettor allows not only better management and system tracking, but also the implementation of responsible gaming policies and effective support for players,” he said.
If implemented, Salvador would join other Brazilian jurisdictions experimenting with subnational lottery initiatives, as states and municipalities are looking for new revenue sources amid fiscal challenges.
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