Brazil’s São Raimundo Nonato approves creation of municipal lottery

Key Points
- Mayor Rogério Araújo de Castro sanctioned law creating the municipal lottery
- Revenue will fund areas such as education, health, culture and social assistance
- Critics highlight legal uncertainties and risks for vulnerable populations
The municipality of São Raimundo Nonato, in Brazil’s northeast state of Piauí, has formally created its own lottery.
The measure, signed by Mayor Rogério Araújo de Castro, authorizes the city to operate or license lottery products.
The initiative passed the City Council by a narrow margin of six votes to four, reflecting political and social divisions surrounding the proposal.
While the administration argues the new service will provide a revenue stream for projects in areas such as education, health, culture, tourism and social assistance, critics warn of limited clarity on oversight and potential social costs.
The law stipulates that revenues will be allocated first to prize payouts, tax obligations and operational expenses, with remaining funds directed to social programs.
Unclaimed prizes will revert to the Municipal Fund for Children and Adolescents.
The city will be able to run the lottery directly or through licensing, public-private partnerships or concessions.
Good to know: Salvador’s City Council is also advancing a bill to establish a municipal lottery
Concerns remain over the potential burden on low-income players, who historically contribute a disproportionate share of lottery revenues.
Legal experts have also questioned the validity of municipal lotteries, saying that without rigid control and transparency, the plan could backfire.
The Municipal Secretary of Administration and Finance will oversee its implementation and compliance with fraud-prevention measures.
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