The City Hall of Porto Alegre publishes a decree regulating the municipal lottery.
The city hall of Porto Alegre published, in an extra edition of the Official Gazette this Wednesday (18), the decree with the rules for the operation of the Porto Alegre lottery – Lopa. The text defines that half of the net revenue will be destined for financing the public transport system.
Furthermore, 35% should be directed towards actions and projects related to urban mobility public policies; and 15% towards actions and projects focused on accessibility and inclusion of people with disabilities or the elderly, reveals Gaucha ZH.
Among the lottery modalities foreseen are, for example, sports and specific predictions, instant bets, passive bets, and fixed-odds or sports bets. According to the document, a management committee, led by the Municipal Secretariat of Economic Development and Tourism, will be created to be responsible for establishing the models, as well as accrediting lottery operators.
The publication of the decree continues the process of creating the municipal lottery, a bill approved last August by Mayor Sebastião Melo. The next pending step is the drafting of a concession notice so that a private company can assume the right to operate the service.
The law stipulates that only legally constituted companies, with headquarters and administration in the country, are authorized to operate lottery services. The municipality, directly or through partnerships, concessions, or permits, must adopt security systems to prevent the tampering or manipulation of lottery tickets.
Other cities with municipal lottery.
The City Council of Guarulhos, in São Paulo, approved the creation of a city lottery in July 2021. Poá, in the interior of the same state, also has a municipal lottery system to raise funds for public coffers.
SMDET will be responsible for the Lottery.
The Municipal Secretariat for Economic Development and Tourism (SMDET) will be responsible for guiding and monitoring the operation of public lottery services, including regulatory, supervisory, and contractual penalty activities.
SMDET, as the manager of the Porto Alegre Lottery (Lopa), must directly or indirectly execute, through contracting services, granting concessions for its public lottery service, or licensing the same, all types of games involving bets and raffles foreseen in Federal Legislation, in order to ensure non-tax resources for the fulfillment of its institutional mission.
The indirect operation of Lopa's public services may be carried out through concessions, permits, authorizations, or other forms of contracting or partnerships provided for by law, in accordance with the rules and regulations.
Royalties for the city hall
According to the decree, the allocation of revenue to the Municipality of Porto Alegre, in the form of royalties on exploitation rights, is foreseen, in a percentage not less than 12%, this percentage being levied on the gross operating revenue of the Lottery relating to lottery products of all types, except those relating to fixed-odds betting, for which the percentage must be not less than 5%.
Awards
The regulation also defines the minimum percentage allocated to prize payments (payout): Numerical Prediction (based on draws) 45%, Sports Prediction 55%, Specific Prediction 50%, Instant 65%, Passive 60% and Fixed Odds Betting 70%.
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DECREE No. 21.849, OF JANUARY 18, 2023.
This law establishes the regulations and implementation of the Porto Alegre Lottery public service (LOPA) and the creation of the LOPA Management Committee (CGLopa).
The Mayor of Porto Alegre, in the exercise of the legal powers conferred upon him by article 94, items II and IV, of the Municipal Organic Law,
Considering that the Federal Constitution guarantees the right of States and Municipalities to operate their public lottery services;
considering that such material exploitation must be carried out in a way that ensures non-tax revenues, aimed at meeting broad social demands within the Municipality of Porto Alegre, in accordance with current municipal legislation;
considering that it is necessary to ensure legal stability for the full exploitation of the public services in question, as was clearly outlined in the decisions of the Supreme Federal Court, more precisely those contained in the course of the Actions for Non-Compliance with Fundamental Precept No. 492, No. 493 and the Direct Action of Unconstitutionality No. 4986;
considering that the explicit and implicit constitutional principles of Article 37 of the 1988 Constitution aim for efficiency and actions based on objective criteria, as well as the issuance of reasoned acts; and
considering that the Municipal Secretariat of Economic Development and Tourism (SMDET), as per Law No. 13.215 of August 16, 2022, is responsible for the direct and indirect operation of public lottery services,
DECREES:
CHAPTER I OF THE STRUCTURE, ATTRIBUTION, CONCEPTS AND OBJECT
Article 1. The Municipal Secretariat of Economic Development and Tourism (SMDET) is responsible for guiding and monitoring the operation of public lottery services, including regulatory, supervisory, and contractual penalty activities for those involved in activities related to this regulation, within the jurisdiction of the Municipality of Porto Alegre, without prejudice to the powers provided for in the legislation.
Sole paragraph. SMDET, as manager of the Porto Alegre Lottery (Lopa), must directly or indirectly execute, through contracting services, granting concessions for its public lottery service, or licensing the same, all types of games involving bets and raffles foreseen in Federal Legislation, in order to ensure non-tax resources for the fulfillment of its institutional mission.
Article 2. The Lopa Management Committee (CGLOPA) is hereby established, composed of one (1) principal member and one (1) alternate member appointed by the Mayor from among the following bodies:
I – SMDET, who will be responsible for its presidency;
II – Mayor's Office (GP);
III – Municipal Attorney General's Office (PGM);
IV – Municipal Finance Department (SMF);
V – Extraordinary Secretariat for Modernization and Project Management (SECEXMGP – GP).
§ 1 The indirect operation of Lopa's public services in this Municipality may be carried out through concession, permission, authorization or other forms of contracting or partnerships provided for by law, in accordance with the rules and regulations.
§ 2 The SMDET may enter into agreements with other public bodies and entities of the Union, other States or Municipalities, to fulfill its purposes related to the operation of the public lottery service.
§ 3 The immediate operation of the public lottery service, as a means of securing non-tax revenue for the Municipality, shall be the responsibility of SMDET, through the accreditation of interested parties who request it and comply with the regulatory and bidding requirements, via permission or authorization for the lottery modalities described in the items of article 5 of this Decree.
§ 4. Concessions, permits, authorizations, or other forms of contracting or partnerships provided for by law shall be preceded by the respective accreditations and issued to interested parties who meet the requirements of suitability, technical and financial capacity, and other conditions provided for by law, in the normative acts issued by SMDET, and in the respective public notice, observing the provisions of this Decree and Law No. 13.215, of August 16, 2022.
§ 5 The form set forth in § 3 of this article shall be adopted until the competent body for analyzing partnerships within the Administration concludes and presents the studies of the legal model indicated for the respective operation.
Article 3. The following are the responsibilities of CGLopa:
I – define the model for operating games through physical, land-based means, as well as games with online betting and generation, and may even operate such games directly and indirectly, through contracting services, granting concessions, permits, authorizations, and licensing via accreditation procedures, as applicable;
II – to issue regulations through Decrees from its Presidency;
III – to set deadlines for the fulfillment of obligations arising from the law, service contracts, concessions or licenses for the operation of games in general, including those operated online, when those deadlines are not expressly set in the legislation;
IV – to pronounce on the implementation plans and construction projects for infrastructure and other equipment that constitute legal or contractual obligations of service providers, concessionaires or licensees;
V – to exercise the powers and responsibilities attributed to the Municipality, by law or by contract, carrying out careful and effective management aimed at safeguarding the public interest and its institutional mission;
VI – to make final decisions on administrative proceedings within its jurisdiction and, if applicable, to apply fines and other sanctions provided for by law, pursuant to its contracts, as well as to adopt any precautionary measures that may prove necessary;
VII – to decide on carrying out the necessary procedures for the proper conduct of sanctioning processes, always ensuring full defense and the right to be heard, in accordance with the law and the Constitution of the Republic;
VIII – to issue and approve codes of conduct or manuals of good practices within the scope of the games under its jurisdiction;
IX – to issue reports on activities inherent to the operation of the Lopa public service;
X – To prepare and execute the annual budget for the services necessary for the regulation and oversight of the agents responsible for gambling, as well as to ensure its implementation;
XI – to carry out the procedures for forming service contracts, concessions, permits, authorizations or issuing licenses, as the case may be, in order to select and allow the public lottery service to be operated efficiently and responsibly;
XII – to approve the technical and technological systems related to games in general, including online betting;
XIII – to determine, whenever necessary, the carrying out of audits, inquiries, investigations or other verifications regarding the management and operation of the operating agents, including their economic, financial or tax situation, ensuring the integrity of the provision of the public lottery service, and
XIV – to control, inspect, regulate, sanction and deliberate on the direct or indirect operation of the public lottery service in this Municipality, observing the same modalities of lottery activities defined by federal legislation.
CHAPTER II OF LOTTERY MODALITIES
Article 4. For the purposes of this Decree, the following definitions apply:
I – Lottery: a municipal public service, created by Law No. 13.215, of August 16, 2022, whose purpose is to promote relevant social areas through the collection of non-tax revenue resulting from the operation of lottery modalities within the territory of the Municipality of Porto Alegre;
II – Lottery modality: any group of products or events in which there is a record of bets, raffles or competitions with prizes, authorized by CGLopa and which was originally established in federal legislation with this title;
III – Municipal lottery operator: a private legal entity, acting as a concessionaire, permittee, or authorized entity for the development of products and all other activities necessary for their commercialization, through the internet or physical points of sale, in the Municipality of Porto Alegre;
IV – Lottery Product: a product created based on current lottery modalities and in accordance with the regulations of CGLopa;
V – Lottery Plan: a document that will contain the general conditions of each lottery product, its characteristics and descriptions;
VI – Gambling addiction: addictive behavior consisting of betting and gambling repeatedly and uncontrollably.
§ 1 The amount allocated to prizes must be expressly stated in the Lottery Plan for each Lottery Product communicated and previously approved by CGLopa, and may be changed for each new period or under the terms of the contracts with the lottery operator, to ensure its competitiveness and efficiency, always aiming to serve the public interest of the Municipality.
§ 2. If the lottery modality is fixed-odds, it must be operated without setting a percentage allocated to prizes, exempting CGLopa, as well as the Municipality itself, from financial risks in the event of a negative result of the operation; fixed-odds lottery modality is understood to mean a lottery modality in which the bettor knows, in advance, the exact amount they may receive as a prize in relation to the registered bet;
§ 3 If the lottery modality is of variable odds, in which the value of the prize to be paid to the winner will be known after the bet or the draw, the amount allocated to the prize must be, at a minimum, the percentage foreseen in the respective federal regulation for the same modality, in order to ensure competitiveness, security and revenue for the Municipality of Porto Alegre, under the terms of the conditions foreseen for each modality; and
§ 4 In Lottery Products involving draws or instant prizes, the respective Lottery Plans must observe the minimum percentage allocated to the payment of prizes, calculated in relation to the face value of the ticket or bet registered, according to regulations published by CGLopa.
§ 5 In accordance with the provisions of this article, the minimum percentage allocated for the calculation of prize payments and the collection of the respective taxes, which together form the payout, shall comply with the table in Annex I of this Decree.
Article 5. The lottery products created and approved according to the general descriptions of the lottery modalities contained in Article 14, § 1, and Article 29, both of Federal Law No. 13.756, of December 12, 2018, will be exploited under the terms of this Decree, and are hereby named as follows:
I – Passive lottery modality: a modality in which the bettor acquires a pre-numbered ticket, in physical (printed) or virtual (electronic and online available on the internet) form;
II – Numerical prediction contest type: a type of contest in which the bettor tries to predict which numbers will be drawn in the contest;
III – Specific prediction contest modality: modality established by Federal Law No. 11.345, of September 14, 2006;
IV – Sports prediction modality: a modality in which the bettor attempts to predict the outcome of sporting events;
V – Instant result lottery modality: a modality that immediately shows whether or not the bettor has won any prize; and
VI – Fixed-odds sports prediction modality: a modality that consists of a betting system related to real sporting events, in which the amount the bettor can win if the prediction is correct is defined at the time the bet is placed.
§ 1. Subject to the legal acts that have been perfected, the modalities listed in this
The device will follow the laws that replace, modify, or supplement Federal Law No. 13.756 of 2018.
§ 2 With a view to the immediate operation of the lottery modalities described above,
As a means of securing non-tax revenue for the Municipality of Porto Alegre, SMDET or CGLopa are authorized to publicly select, through their own procedure, the operation of public lottery services.
§ 3 The products developed under the terms of the lottery modalities dealt with by
This Decree must, at a minimum, meet the following provisions:
I – publication of the rules for each lottery product, available on the municipal lottery's own website and on the lottery products themselves;
II – provision for practices to control gambling, ensure the integrity, fairness, and transparency of bets and lotteries, maintaining a customer service channel funded by the authorized or licensed operator;
III – provision for the allocation of revenue to the Municipality of Porto Alegre, in the form of royalties on exploitation rights, in a percentage not less than 12% (twelve percent), this being levied on the gross operating revenue of the Lottery relating to lottery products of all types, except those relating to the type provided for in art. 5, item VI of this Decree, whose percentage shall not be less than 5% (five percent);
IV – provision for the allocation of revenue to the Municipality of Porto Alegre, in the form of royalties on exploitation rights, as a percentage of the Lottery's gross operating revenue related to lottery products of all types;
§ 4. Each Lottery Product shall have its drawing dynamics described in advance on the product card, preferably, or by other means in an unequivocal manner, here considered to be the set of rules that defines the quantity and price of bets, the quantity, quality and value of prizes, the probability of winning, the expected circulation period, means of commercialization, technologies employed and other specifications that make up a lottery product and/or a series of draws and products, and may also adopt the results of the Federal Union Lottery draws for similar modalities;
§ 5 For modalities in which bets are collected via the internet or other electronic means, compliance with territoriality must be ensured beforehand, through certification by a legal entity or specialized body, to be determined by CGLOPA.
CHAPTER III OF THE REVENUE OF THE PORTO ALEGRE LOTTERY
Article 6. The net operating revenue of Lopa's service is the product of the collection from the operation of lottery products, less the administrative costs of said service by the Municipality of Porto Alegre.
§ 1. The proceeds from the collection, for the purposes of this Decree, including for the application of the provisions of § 3, item III of article 5 of this Decree, are the result of the total collected from the sale of lottery products, less the total prizes paid in the same period and the taxes levied on the prizes.
§ 2 The collection of the proceeds from the revenue shall be carried out by the legal entity holding the concession, permit or authorization, under any title, to operate the public lottery service, at no cost to the Municipality, and shall formalize the rendering of accounts monthly, with the respective transfer due to the Municipality of Porto Alegre.
§ 3 The basis for calculating transfers for social purposes or other purposes will always be the revenue allocated to the Municipality of Porto Alegre.
§ 4 In all municipal lottery products marketed, a previously defined percentage participation must be ensured, as revenue for the Municipality of Porto Alegre, in the form of royalties, calculated as provided for in § 3, item III of article 5 of this Decree, thus guaranteeing the economic and market viability of the lottery products offered in the territory of Porto Alegre, as determined in § 3 of this article.
§ 5. Prizes not claimed within 90 (ninety) days will be allocated to finance actions aimed at social assistance.
Article 7. The following constitute revenues of the Municipality resulting from the operation of the lottery service in the Municipality of Porto Alegre:
I – the proceeds from the collection of revenue from the operation of lottery modalities, in the form of royalties;
II – the revenue resulting from payments of the fixed grant for the concession and for the issuance of the permit or authorization, as the case may be, which will be due from all lottery operators;
III – income derived from financial investments;
IV – aid, subsidies, donations and bequests from individuals or legal entities, public and private, national and international;
V – the result of agreements and conventions entered into;
VI – other sources permitted by law.
CHAPTER IV ON THE ALLOCATION OF REVENUE
Article 8. The net revenue obtained from the operation of the LOPA public service will be allocated as follows:
I – 50% (fifty percent) to the financing of the Public Collective Transportation System;
II – 35% (thirty-five percent) for the financing of actions and projects and for the provision of resources to cover the costs of the public policy on urban mobility;
III – 15% (fifteen percent) for the funding of actions and projects for accessibility and inclusion of people with disabilities or the elderly.
Sole paragraph. The SMF will regulate the method of delivery of the proceeds from the collection foreseen in this article.
Article 9. It is the responsibility of SMDET, which may be delegated to CGLopa, to accredit lottery operators in the Municipality of Porto Alegre, upon proof of compliance with all the requirements contained in this Decree and the respective public notices, so that they, through concession, permission, authorization or other forms of contracting or partnerships provided for by law, may carry out the operation of the public lottery service for a period of up to 5 (five) years, renewable for an equal period.
§ 1 The accredited lottery operators must develop all necessary actions, at their own expense and responsibility, and operate the public lottery service of the Municipality, limited to the modalities permitted to them, under the terms of federal and municipal laws, this Decree and the Public Notice, and within the limits of the territory of the Municipality of Porto Alegre.
§ 2. Lottery operators must submit monthly reports to SMDET and CGLopa, providing all data regarding:
I – billing;
II – awards;
III – payment of taxes;
IV – collection of the variable grant due to the Municipality.
Article 10. It is within the competence of the Secretary of SMDET, and may be delegated to CGLopa, to decide on the auditing of lottery draws, product certifications, lottery procedures, or other related matters.
CHAPTER V OF INSPECTION
Article 11. SMDET, as the executor of the Lopa service, may directly, or through agreements, arrangements, contracts or other similar instruments, carry out inspections of equipment, processes and procedures, as well as request, when necessary, the appropriate inspections, including those from health surveillance.
Sole paragraph. The prerogative referred to in the heading of this article includes access to the premises, items, documents and equipment of lottery operators related to the provision of lottery services, observing due process of law, the right to confidentiality and the property rights of those being administered.
CHAPTER VI OF PENALTIES
Article 12. As provided for in the legislation governing public procurement and oversight, as set forth in this Decree, under the jurisdiction of SMDET (Municipal Secretariat for Economic Development and Labor), which may be delegated to CGLopa (General Coordination of Lottery Activities), the failure by concessionaires, permit holders, authorized entities, and other contractors for lottery activities in the Municipality to comply with the rules established by law, regulation, or public notice, will result in administrative sanctions, regardless of a court order and according to the severity of the conduct, through a duly substantiated infraction notice, under the following terms:
I - warning;
II – fines, in accordance with the laws governing public procurement;
III – temporary suspension of operations;
IV – revocation of accreditation, permit or authorization or other form of contracting.
Sole paragraph. No lottery modality foreseen in this Decree may be operated within the territory of the Municipality of Porto Alegre without a concession, permit, authorization, or other forms of contracting or partnerships provided for by law, carried out by CGLopa, except when operated by the Federal Government and the State of Rio Grande do Sul, as provided by law.
CHAPTER VII OF THE EXECUTIVE SECRETARIAT FOR INTERNAL CONTROL, COMPLIANCE AND OMBUDSMAN
Article 13. The SMDET (Municipal Secretariat for Economic Development, Tourism and Labor) shall establish and regulate the Executive Secretariat for Internal Control, Compliance and Ombudsman (SECCO), specifically for Lopa (Local Planning and Budget Office), composed of the Internal Control Agent, Compliance Agent and Ombudsman, administratively subordinate to the Secretary of SMDET and technically articulated to the Municipal System of Internal Control and Compliance of the Comptroller General of the Municipality (CGM).
CHAPTER VIII FINAL PROVISIONS
Article 14. Lottery operators and other agents, including service providers, shall be responsible for the proper operation of lottery products, as well as liable for any and all acts performed by their legal representatives or agents, especially for the effects arising from these acts that may cause harm to third parties, even if they contract with legal entities for administration.
Article 15. Participation in advertising campaigns, betting, and the purchase of lottery products of any municipal type are prohibited for persons under the age of 18 (eighteen) and for persons legally incapacitated.
Article 16. SMDET, in its capacity as the executor of the LOPA lottery service, will render accounts to the Court of Auditors of the State of Rio Grande do Sul (TCE/RS).
Article 17. The implementation of the provisions of this Decree is conditional upon
Compliance with Complementary Law No. 101, of May 4, 2000, and Federal Law No. 9.504, of September 30, 1997.
Article 18. SMDET and CGLopa are authorized to develop mechanisms for administrative cooperation with other entities of the Federation, especially regarding the prevention and punishment of illicit practices related to gambling, whether physical or online.
Sole paragraph. In addition to the provisions of this article, responsible gambling must be ensured, including the creation of a database with up-to-date information on individuals who are voluntarily, administratively, or judicially prohibited from gambling.
Article 19. CGLopa is authorized, in the exercise of its duties, to use, directly or through third parties, digital systems or platforms of technological innovation, for the execution of activities related to receiving revenue, as well as paying prizes, providing for the exchange between credits originating from the purchase of its lotteries and other facilities provided by the Municipality of Porto Alegre, in accordance with Federal Legislation.
Article 20. This Decree shall enter into force on the date of its publication.
City Hall of Porto Alegre, January 18, 2023.
Sebastian Melo,
Mayor of Porto Alegre.
Register and publish.
Roberto Silva da Rocha,
Attorney General of the Municipality.
ANNEX I
| Lottery modality | MINIMUM PAYOUT |
| Numerical Forecast (based on lotteries) | 45 % |
| Sports Forecast | 55 % |
| Specific Prognosis | 50 % |
| instant | 65 % |
| Passive | 60 % |
| Fixed Odds Betting | 70 % |
