If the traditional lottery market in Brazil continues to grow, the government estimates that the money used in gambling could triple in the next ten years with the end of the Caixa Econômica Federal monopoly. The opening of the instant lotteries and sports betting markets are expected to start in the first half of 2022.
Gustavo Guimarães, Secretary of Evaluation, Planning, Energy and Lottery (Secap) at the Ministry of Economy, believes that greater competition in the Brazilian market may even increase federal lottery revenues, as more offer of games can create more betting consumers.
In addition to the Ministry of Economy, the Special Secretariat for Sports of the Ministry of Citizenship, the Federal Police and even the Central Bank participate in the debate. “There are many players involved, to preserve the integrity of the sport and curb money laundering. There are a series of questions about responsible gaming and themes to be discussed about advertising of games,” says the secretary.
Secap has been sought out by large international groups that already operate both instant lotteries - the famous "scratch cards" - and sports betting in several countries. The "big and good" conglomerates, as Guimarães classifies, are interested in participating in a market safe and regulated, where they can explore a wider range of products.
“Brazilians are already well acquainted with instantaneous prizes, of lesser value, which bring joy at the time. Now they are starting to get to know sports betting, which is one more reason to cheer during matches,” he says.
Today, although Mega-Sena pays the biggest prizes in the country, the games that have advanced the most in the taste of players are Lotofácil and Quina. The two modalities grew 25% and 14%, respectively, in the accumulated up to September compared to the same period last year. Compared to 2017, Lotofácil registers a 75% increase in bet values. As a result, Lotofácil is now the main lottery product, ahead of Mega-Sena and Quina.
If the traditional lottery will already earn BRL 18 billion (USD 3.16 bln) in 2021, government calculations estimate that instant lotteries could yield up to BRL 22 billion (USD 3.86 bln) a year by the end of this decade, while the sports betting market could hit the BRL 20 billion (USD 3.5 bln) annually as early as 2026.
While the lottery market remains on the rise, a good part of the amount bet is invested in social projects. From January to September of this year, BLR 6.35 billion (USD 1.11 bln) were reverted to social policies, an increase of 11% compared to the same period in 2020. Most of these resources are directly linked to social security and areas such as education, security and sport promotion.
Brazilian uses the lottery as an 'antidote' to solve financial problems
Playing the lottery was already part of the routine of 53-year-old Wladson Violante. But with the greater financial difficulties in the pandemic, the hope of getting the numbers drawn "to solve life" also increased. Driver and painter, because “the pandemic made us do everything”, he has debts with traffic tickets and currently receives help to live.
Violante is just one of millions who have turned to lotteries as a hope to change their lives. The value of bets grew more than 8% this year and should exceed BLR 18 billion (USD 3.16 bln) in 2021, the highest volume in history.
With technological innovations and a larger menu of games, the lotteries operated by Caixa Econômica Federal have been growing in recent years, but the pace has accelerated as the population's financial difficulties have grown since the COVID-19 pandemic. Compared to 2017, the face value bet has already grown by almost 30%.
"Obviously, when we are in a situation with the economy falling, with the income shaken or receiving government aid, there is this hope of achieving something better through the lottery," says the Ministry's secretary of Evaluation, Planning and Lottery (Secap) of Economy, Gustavo Guimarães. "We have also seen an increase among players different from the traditional customers of these games," he added. According to him, technological advances made by Caixa, such as the possibility of playing online and the use of Pix to pay bets, also boosted the growth of games. For strategic reasons, the state-owned bank does not reveal the weight of technological innovations in growth.
With the increase in bets throughout the year, the government expects Mega da Virada to pay a record prize in 2021, in the region of BLR 350 million (USD 61.4m). Violante will leave to make the Mega da Virada bet on the eve of the contest, on the 31st, using the technique he developed to choose the numbers: look at previous contests and bet on the ones that came out the most. He already has an idea of what to do with the dream prize in cash, after the disputes with Detran (State Department of Transit) have been resolved: invest in real estate to have a source of income and invest in savings.
Source: Eduardo Rodrigues e Érika Motoda, O Estado de S.Paulo
