It is a market that is not insignificant. Last year, Caixa Econômica Federal lotteries raised R$ 17.1 billion (US$ 3.07b) in bets - a historic record and representing a growth of 2.35% in relation to 2019, when the collection was R$ 16.7 billion (US$3b), previous record. Mega-Sena is the lottery most sought after by gamblers, responsible for 40% of the total collected.
According to Valor, the expectation is that the rules under study in the Economics portfolio will be published later this month. The ordinance should reflect what is in the decree-law that provides for lotteries. One of the points concerns the territorial limit for action. The legislation says that "the federal lottery will have free circulation throughout the country, while state lotteries will be restricted to the limits of the respective state." In a note, the ministry informed that the exploration must comply with “federal legislation”, in accordance with the STF's decision.
At the end of September 2020, the ministers of the STF understood that the Union has exclusive competence to legislate on lotteries, but that this does not mean that it is the only federative entity capable of exploring this activity. The decision came after a decades-long stalemate between state and federal governments. The theme gained more relevance at a time when the Union seeks to open its lottery market.
The private sector is already moving. Sorte Online, which operates in the lottery market, created BRLOT, a company that will sell, in addition to technology, commercial and operational services to states that want to set up their lotteries.
“As the federal lotteries are operated by a state-owned company, the logic is to seek a commercial model of exploration that is interesting for the States and the consumer and that is also economically viable for our operation,” said the CEO of the Sorte Online group, Marcio Malta, to Value. The model is expected to start operating this year, but the timeframe depends on the progress of discussions in the States and the evolution of the pandemic.
Before the Supreme Court decision, four states already operated lotteries: Rio de Janeiro, Minas Gerais, Ceará and Paraíba. Now, especially in a time of tightening in public accounts, there is an intense movement in governments to initiate or expand the offer of games, in some cases online. In response to the report, several entities stressed that the understanding of the STF was fundamental to provide security to regional studies.
In Paraíba, where there is already a lottery, a decree was published this year regulating exploitation. Studies on models are being carried out and the expectation is to expand operations in the second half of the year. In Rio de Janeiro, a public hearing was held to discuss possible bids for the instant lottery, numerical prognosis, and fixed quota, in both physical and digital versions.
Maranhão has operated lotteries in the past and is now working to make the service available again this year. After approval of a state law, in January the State issued a public call for proposals to receive studies and projects from companies. In the Federal District, the process of expression of interest was recently closed and modeling studies will begin. The idea is to complete the lottery operation process by the end of 2021.
In Santa Catarina there is also a study in progress, which should be presented at the end of 2022. The State is monitoring the movement of other entities and the idea is to create a lottery with a prize linked to the issuance of invoices to consumers. In Paraná, a joint commission was recently created to carry out preliminary studies on the topic.
"Every day there is a news about the States," stressed the CEO of Sorte Online. For him, the national lottery market is still little explored and can double in size. He also defended that the percentage of the collection destined to the prizes is relatively low in the country and the idea is to create a model that is “attractive” for all parties. The distribution of resources is another point monitored by the federal government.
The company wants to create a model that brings integration between online and physical verticals. The idea is to close partnerships with commercial establishments, such as gas stations and retailers. An agreement to use the lottery structure is not ruled out, “but it also depends on Caixa's interest”. Another option would be to use points from the state governments themselves
Source: Mariana Ribeiro — Valor Económico
