Zona de Azar Brazil – Brazil: Invalidation of the Tender to Reactivate Lotesul Confirmed

Brazil.- June 4, 2024 www.zonadeazar.com  The Superior Court of Justice (STJ) rejected the appeal presented by the State Attorney General’s Office (PGE) and confirmed the invalidation of the bidding process to reactivate Lotesul (Lottery of the State of Mato Grosso do Sul).

The decision was made unanimously by the First Panel during a virtual session that took place from May 21 to 27.

In September 2021, Lotesul was reintroduced with expectations of generating revenues of R$ 9.8 billion within a decade. At that time, Mato Grosso do Sul legislators approved the relevant legislation.

On August 15, 2022, the state government published the notice of granting the lottery service.

However, on August 22, 2022, NGT Brasil Tecnologia e Atividades Lotéricas Ltda, based in Curitiba, Paraná, filed a writ of mandamus before the Court of Justice of Mato Grosso do Sul (TJMS).

The notification was annulled by the courts and the PGE was awaiting a decision from the STJ on the appeal.

A technical study linked to the TJMS case suggests that the State Lottery has the potential to raise R$ 9.8 billion in ten years.

Of that value, R$ 7.5 billion would be allocated to premiums (payout).

The revocation of the announcement has a considerable effect on the state government’s revenue expectations. Lotesul was expected to provide significant income, favoring the region’s economy.

However, the persistence of this legal dispute raises questions about the fate of lottery activities. At the same time, the State Attorney General’s Office (PGE) evaluates legal alternatives to invalidate the current ruling and continue with the Lotesul initiative.

What will happen in the long term with Lotesul depends on the future actions of the state government and the courts’ resolution of the ongoing legal proceedings.

Edited by @_fonta   www.zonadeazar.com