The Municipality of Joaquim Gomes, in Alagoas, has officially opened Public Tender no 03/2025 to grant a 20-year concession for the management, implementation and operation of its own municipal lottery.
The project includes both physical and digital platforms and covers all betting modalities permitted under federal law.
The move places Joaquim Gomes among more than 70 municipalities that, since late 2023, have approved similar laws as part of a broader attempt to diversify local revenue sources and strengthen funding for public services such as healthcare and education.
According to the municipality, the contract may be extended for an additional 20 years if the concessionaire demonstrates good performance and renewal aligns with the public interest.
Initial revenue is estimated at BR244,678 ($46,144), though the final value will depend on the winning bid.
The tender's main criterion is the highest percentage offered above the minimum 5% share of gross revenue required by the municipality.
Unlike conventional bidding processes, Joaquim Gomes City Hall is not demanding previous technical experience, minimum capital or upfront investment from competing companies.
Instead, the municipality is adopting an operational proof of concept as the determinant for assessing technical capability.
The provisional winner must, within five days, present a fully functioning demonstration of the proposed lottery system, meeting all technological and operational requirements.
However, the initiative remains in a legal grey area.
While federal law 14.790/2023 attributes the regulation of fixed-odds betting to the Union, states and the Federal District, without mentioning municipalities.
Several local governments argue that the absence of explicit prohibition, along with precedents that ended the federal monopoly on lotteries, creates legal room for municipal regulation.
A similar case occurred recently when another Brazilian municipality in São Paulo launched a lottery without federal authorization
