The Goiás Lottery bill provides for concessions and permits for its operation.

The Official Gazette of the Legislative Assembly of Goiás – ALEGO published the full text of Bill 741/2020, which recreates the Goiás State Lottery (LEG), authored by Representative Vinícius Cirqueira (Pros).

The bill stipulates that the operation of lottery services and activities, prediction contests, games, or electronic entertainment may be carried out directly by the State, through the Secretariat of Economy, or by concession or permit, observing the bidding procedure. Furthermore, according to the proposal, accreditation and authorization may only be granted to legal entities domiciled in the state of Goiás.

The proposal defines a 'Prognostics Contest' as "any and all drawings of numbers and symbols, considered a lottery, promoted by the Public Authority through the Goiás State Lottery or authorized by it to charitable or sporting associations." 'Lottery' is defined as "any operation authorized by the Public Authority that, through the distribution of tickets, lists, coupons, vouchers, signs, symbols or similar means, makes the obtaining of a prize in money or goods of another nature dependent on a drawing."

The proceeds from lottery operations, as defined in the regulations, will be allocated as follows: 10% to the formation of a Special Reserve Fund to guarantee the entity's own capital, 30% to be invested in social security projects, 30% to be invested in sports and leisure projects, 20% to be invested in culture and tourism projects, and 10% to be invested in public safety projects.

The projects may include investments and operating and maintenance expenses, as well as training and development of human resources. The analysis of these projects will be carried out by a technical team from the Secretariat of Economy and approved by the Governor of the State of Goiás through a Decree.

The operation of the lottery modality will be granted under the following conditions: on a temporary basis, until the issuance of regulations to sports entities accredited by the government, and on a permanent basis, valid for one year, to private legal entities that request accreditation to operate the lottery modality covered by this law and that meet the requirements and conditions to be established in the regulations.

In the case of operating lottery-related activities on a temporary basis, companies must present a contract signed with the sports entity, which must also request accreditation from the Secretariat of Economy to operate lottery services and activities, prediction contests, games, or electronic entertainment.

Part of the bill that recreates the Goiás Lottery:

BILL NO. 741 OF NOVEMBER 03, 2020

Regulates the operation of lottery activities within the State of Goiás and provides other measures.

The Legislative Assembly of the State of Goiás, pursuant to Article 10 of the State Constitution, decrees and I sanction the following Law:

Article 1. The operation of lottery services and activities; prediction contests, games or electronic entertainment, within the State of Goiás, is subject to delegation or authorization from the Executive Branch, as the case may be, and its regularity and legality are subject to compliance with and observance of this Law.

§1 The operation of the service referred to in this article may be carried out directly by the State, through the Department of Economy, or by concession or permit, subject to the bidding procedure.

§2 Accreditation and authorization may only be granted to legal entities domiciled in the State.

Article 2. For the purposes of this law, the following definitions apply:

I – PREDICTION CONTEST: any and all drawings of numbers and symbols, considered a lottery, promoted by the Public Authority through the Goiás State Lottery or authorized by it to charitable or sporting associations;

II – LOTTERY: any operation authorized by the Public Authority that, through the distribution of tickets, lists, coupons, vouchers, signs, symbols or similar means, makes the obtaining of a prize in money or goods of another nature dependent on a draw.

Article 3. The lottery modality referred to in Article 1 of this Law shall be permitted throughout the State of Goiás, and the total resources collected from this activity shall be allocated as follows in the regulations:

I – 10% (ten percent) for the formation of a Special Reserve Fund to guarantee the entity's own capital;

II – 30% (thirty percent) for application in projects in the area of ​​social security;

III — 30% (thirty percent) for application in projects in the area of ​​sports and leisure.

IV — 20% (twenty percent) for application in projects in the area of ​​culture and tourism;

V – 10% (ten percent) for application in projects in the area of ​​public safety.

§1 The projects referred to in this article may include investments and operating and maintenance expenses, as well as training and development of human resources.

§2 The analysis of projects will be carried out by a technical team from the Secretariat of Economy and approved by the Governor of the State of Goiás through a Decree.

Article 4. The operation of the lottery modality addressed in this Law will be granted under the following conditions:

I — on a temporary basis, until the issuance of the Regulation mentioned in the previous article, to sports entities duly accredited by the Government of the State of Goiás;

II — on a permanent basis, valid for 1 (one) year, to private legal entities that request accreditation to operate the lottery modality covered by this law and that meet the requirements and conditions to be established by the Regulations.

Sole Paragraph. The private legal entities referred to in item I must necessarily present a contract signed jointly with the sports entity, which must also request accreditation from the Secretariat of Economy, for the operation of the lottery modality referred to in Article 1, observing the regulations mentioned in Article 2 of this law.

Article 5. For the purposes of administration and control of the lottery modality provided for in this legislation, the admission of participants must comply with procedures designed to verify the entry of people into the premises, prohibiting access to:

a) to minors under 18 (eighteen) years of age;

b) those who show clear signs of drunkenness, drug intoxication, or mental illness;

c) to those carrying weapons or any objects that could be used as such.

Article 6. Private companies and sports entities accredited and authorized to operate lottery services, under the terms of this law, shall regularly report to the Secretariat of Economy on the authorized activity and the transfer of resources for the promotion of sports and for the development of social assistance, as regulated.

Article 7. The Secretariat of Economy, upon verifying non-compliance with the provisions of this law or its regulations, shall apply the following administrative sanctions, in this order, always ensuring the right to a fair hearing and full defense:

I — notification of the irregularity;

II — to prohibit and/or seal off equipment;

II — suspend activities;

III — to revoke authorizations;

IV — to disqualify the sports entity.

Sole paragraph. Administrative penalties will be applied without prejudice to other sanctions provided for in criminal and tax legislation.

Article 8. The Executive Branch, by decree, shall regulate this Law, including provisions regarding its effects on lottery services and games that are being operated on the date of its entry into force.

Article 9. All provisions to the contrary are hereby repealed.

Article 10. This law enters into force on the date of its publication.

VINICIUS CIRQUEIRA

State Representative (PROS)

JUSTIFICATION

The Brazilian Supreme Federal Court recently ruled that the Union's exclusive competence to legislate on consortium systems and lotteries does not prevent Member States from operating such activities. In other words, although they do not have legislative competence over the matter, the States have material competence to operate the activity.

This decision comes at a difficult time for the nation, in which the health emergency resulting from the coronavirus pandemic (SARS-CoV-2) has been severely impacting private economic agents and deepening the fiscal crisis of federated entities. The possibility, recognized by the Supreme Federal Court, of states operating lotteries and similar activities has the potential to contribute to overcoming the acute health, economic, and fiscal crisis.

Thus, this proposal aims to regulate the allocation of resources collected from lottery activities by the State, including, in addition to health and social security, as provided for in the original wording of the aforementioned law, also state funds for sports and culture, since these activities are also extremely important for overcoming the consequences of the pandemic and for the formation of citizenship.

Therefore, given its constitutionality and simple purpose, I request the support of my esteemed colleagues for its approval.

Meeting room of the Legislative Assembly of the State of Goiás, on the 03rd day of November 2020.

VINICIUS CIRQUEIRA

State Representative (PROS)