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A recent City Council of Aracaju (SE) public hearing on Friday, May 6th, set the proposed creation of a municipal lottery, named Locaju, into perspective. The legislative bill that aims to establish a public lottery service to generate municipal funds for social purposes has set the city on fire. The bill’s initial voting was on May 8th and is scheduled for more debates in the coming weeks.
Public Hearing Highlights Diverging Views
The hearing was witnessed by some local associations, including the Federation of Commerce of Goods, Services, and Tourism of the State of Sergipe (Fecomércio), the Association of Christian Business Leaders (ADCE), and the Association of Catholic Jurists of Aracaju (AJUCAT). The hearing had been summoned in answer to a request by Deputy Councilor Lúcio Flávio (PL), the deputy leader of the city government in the chamber and fierce opponent of the project.
Councilor Flávio denounced his opposition to the opening on social media, stating: “The people of Aracaju don’t need more games of chance. Everyone has someone who has suffered as a result of gambling addiction.” That opinion is shared by the governmental stance taken by the National Conference of Bishops of Brazil (CNBB), whose public press release against the opening of the lottery was supported by the Archdiocese of Aracaju.
Activists Present Case for Social Priorities Distribution of Revenues
In contrast, Councilor Isac Silveira (União), sponsor of the bill, justified the project by highlighting its public interest agenda. According to Silveira, the overall aim of Locaju is to establish a state-regulated, transparent lottery service whose revenues will go to the most critical areas, such as healthcare, education, and social assistance.
“This is a war over resources,” Silveira said. “The state has already acted, and municipalities are entitled to do the same. We are talking about a legitimate, public lottery aimed at social justice and the public interest.” He said the proposal is part of emerging patterns elsewhere in the country, where cities and states have opened up their public lottery systems to assist in filling local coffers.
Silveira estimates that the city lottery can contribute millions of reais to Aracaju’s coffers, bringing in a welcome revenue without raising taxes or cutting back services.
The State Lottery Model
Sergipe state government t has also already started its public lottery, named Lotese, run by the State Bank of Sergipe (Banese). Launched on May 26th, Lotese offers over 600 types of gaming products, including fixed-odds betting, numerical predictions, scratch cards, and video lottery terminals (VLTs).
Banese officials have pointed out that the web-based availability of these games is geofenced, only accessible to users located physically within the state. The bank seeks to expand the coverage of Lotese by rolling out video lottery terminals in numerous outlets across Sergipe.
Furthermore, Banese has opened a special venue—Espaço Lotese—at the Arraiá do Povo festival site on the Atalaia beachfront in Aracaju, where live lottery drawings and related activities will be conducted. This is an added move to position the lottery more in the face of public life and create additional visibility for the campaign.
Debate Reflects Broader National Trends and Local Controversy
The Aracaju lottery scandal is a small-scale representation of national patterns as cities turn to new sources of income in a strained fiscal setting. The scandal also represents local conflict between economic practicality and moral or social concerns.
The proponents argue that a city lottery provides an effective and legal means of funding basic public services without adding to the burden of taxpayers. Opponents advise against the social dangers involved in diversifying gambling, such as addiction and economic injury, especially to vulnerable segments of society.
As the proposal approaches a second vote, Aracaju City Council must navigate a complex intersection of economics, morals, and municipal policy. The vote could set a precedent for other municipalities in Brazil considering similar action. Whether Locaju becomes a reality or not, the controversy has already sparked a broader discussion of the role of public lotteries in modern municipal politics.
Source: iGaming Brasil
