Each week thousands of people turn to luck hoping to get rich. Brazilians are betting more this year. From January to September, lottery revenue totaled R$ 12.11 billion (US$ 2.87bn), up 22.7% from the R$ 9.87 billion (US$ 2.34bn) in the same period last year. The data were released by the Secretariat of Evaluation, Planning, Energy and Lottery (Secap) of the Ministry of Economy.
In Brazil, the operation of lotteries is up to the federal government. The Exclusive Instant Lottery (Lotex), also known as a scratch card, was awarded to the private sector in late October, but exploration by the winning consortium (IGT/SG) will not begin until mid-2020.
According to Secap, lottery revenue began the year near stability, but rose from April. In the first quarter, bets yielded R$ 3.3 billion (US$ 784,000) against R$ 3.28 billion (US$ 779,000) in the same period last year. In the second quarter, revenue jumped to R$ 4.76 billion (US$ 1.13bn), up 53% compared to R$ 3.12 billion (US$ 741,000) in the same months of 2018. In the third quarter, most recent data released, lottery collection reached R$ 4.05 billion (US$ 962,000), up 16% over the same period last year.
Social programs
The growth observed in 2019 is concentrated in the three most lottery modalities played in the country: Mega-Sena, Lotofácil and Quina. Rising stakes are reflected in more money for social, sports, cultural and security policies.
From January to September, lottery money transferred to government programs totaled R$ 5.83 billion (US$ 1.38bn), an increase of 23.2% over the R$ 4.73 billion (US$ 1.12bn) transferred in the same period in 2018.
The new lottery regulatory framework, which came into force at the end of last year, allocates part of the betting resources to the National Public Security Fund (FNSP) and the National Penitentiary Fund (Funpen). Currently, 43.35% of the money raised finances the payment of gross premiums (without income tax discount).
The remainder is distributed as follows: 17.32% to social security; 9.26% for the FNSP; 2.92% for the National Culture Fund (FNC); 2.46% for the Secretariat of Sports of the Ministry of Citizenship; 1.73% to the Brazilian Olympic Committee; 1% for Funpen; 1% for State Sports Offices; 0.96% for the Brazilian Paralympic Committee and 0.87% for other committees, clubs and sports federations. Official figures indicate that 19.13% of revenues cover lottery operating costs, such as lottery commissions, operating expenses and resources for the Lottery Development Fund.
Source: GMB / Gazeta Web
