In Brazil, 15 states and the Federal District are authorized to operate lotteries, and only 3 states operate fixed-odds betting
Understand how the system of state lotteries works throughout the country and its regulatory twists
The Lottey House
tags:
lottery
authorized
Introduction:
In Brazil, lotteries have been an important part of the gaming and entertainment culture for decades. With different modalities and attractive prizes, state lotteries attract the interest of millions of Brazilians nationwide. The text highlights that, despite the popularity of lotteries, the panorama of state lotteries is marked by significant diversity. While some regions operate their lotteries successfully, others face diverse challenges, from waiting for authorization to start activities to regulatory and policy issues that directly impact the operation of these games.
A survey conducted by a specialized company revealed valuable information about the status of lotteries in different regions of Brazil, providing important insights into the gaming industry in the country. This suggests that there is a growing interest in understanding and analyzing the scenario of state lotteries, both by consumers and regulatory agencies and companies in the sector.
Thus, in this article, we will establish a context for the discussion that will follow, highlighting the importance of understanding the nuances of the state lottery system in Brazil, its regulatory twists, and the challenges and opportunities that each state faces regarding its lottery operations.
1. Authorization to Operate Lotteries
According to the survey conducted by a specialized company in December 2023, 15 Brazilian states and the Federal District are authorized to operate lotteries in their regions. However, surprisingly, the vast majority of states still do not have their lotteries in operation, indicating a significant disparity in the panorama of state lotteries in the country.
The history of lotteries in Brazil dates back decades, with permission for their operation established by Decree Law No. 3259/1944. However, in 1967, the creation of new state lotteries was prohibited by Decree Law No. 204, limiting the establishment of new types of games nationwide.
2. Current Situation of State Lotteries
After the legislation of 1967, only the existing lotteries in the 15 established states were able to continue operating, while the creation of new lotteries was interrupted. However, although authorized, several states still do not operate their lotteries due to a variety of reasons, including regulatory and policy issues.
Among the states authorized to operate lotteries, only Rio de Janeiro (Loterj) and Paraná (Lottopar) currently have their lotteries in operation. Other states, such as Paraíba, have opened tenders to explore fixed-odds betting, demonstrating a growing interest in resuming lottery activities.
However, some states, such as Pará, Goiás, and Piauí, have had state lotteries in the past but currently do not operate them. Meanwhile, some state legislatures, such as those of Mato Grosso do Sul and Espírito Santo, are discussing proposals to resume lottery activities, but many have not yet reached a conclusion on the matter.
It is important to highlight that, in 2007, the Federal Supreme Court (STF) prohibited 12 states from exploiting their state lotteries, a decision that had a significant impact on the betting scenario in the country. However, in 2020, a new understanding established that the Union could not have a monopoly on lottery activity in Brazil, paving the way for changes in legislation.
3. Regulation and Lottery Modalities
With the legislation updated in December 2023, Brazilian states have the opportunity to explore the lottery modalities allowed by law, providing a new dynamic to the gaming industry in the country. However, the prohibition still remains for casinos and bingo halls, reflecting a cautious approach to certain forms of gambling.
States that operate their own lotteries establish rules for operation and charge concession fees to authorize companies to have licenses to operate. In addition, fixed-odds betting is one of the most common modalities offered, with rules defined by national legislation.
According to Article 2, II, of Law No. 14,790/23, which regulates sports betting in Brazil, fixed-odds betting is those in which there is a multiplication factor of the bet amount, determining the amount to be received by the bettor in case of a prize, for each unit of national currency bet.
Local betting companies can also seek federal authorization to offer their bets in other regions and states in Brazil. However, this will only be possible when the modality is regulated at the national level, as Brazil currently does not have legislation that allows specific rules in each state, as is the case in the United States.
Conclusion:
The conclusion of this article highlights the complexity and diversity of the state lottery landscape in Brazil, emphasizing that different states face unique challenges and opportunities regarding their lottery operations. While some states already operate their lotteries successfully, others are still in the process of resuming or awaiting authorization to start their activities.
The recent legislation that allows states to explore the lottery modalities allowed by law paves the way for significant changes in the gaming industry in Brazil in the coming years. However, it is emphasized that these changes must be accompanied by effective regulation and consumer protection measures. This is essential to ensure the integrity and transparency of lottery operations throughout the country, promoting a safe and fair environment for participants.