MIÉ 27 DE NOVIEMBRE DE 2024 - 08:37hs.
May be exploited by private sector

Chamber approves creation of lotteries to finance health and tourism, includes sports betting

Brazil’s Chamber of Deputies approved this Tuesday (30) the bill that authorizes the federal government to create health and tourism lotteries, and includes physical and virtual sports betting, that can be exploited by a private company. The text will go to presidential sanction. A part of the profit to be collected will be destined to the National Health Fund (FNS), in the case of the Health Lottery; and the Brazilian Agency for the International Promotion of Tourism (Embratur).

The proposal was defended by the rapporteur, deputy Giovani Cherini (PL-RS). “This lottery will be the big bid to pay the nurses' floor wage. The Ministry of Economy will manage it, which has a competent sector for this, which inspects, so everything will be within the law,” he said.

Cherini highlighted that Caixa Econômica Federal (CEF) is not prevented from participating in the contest to organize the lottery. “We want to open up the possibility to the private sector,” he declared.

This point was criticized by the opposition. Deputy Erika Kokay (PT-DF) stated that the text does not establish criteria for the concession. “It is not known what the methods will be for choosing this company. No bidding required to operate. This is a scandal, it is favoring some company that, of course, you already know who it will be.”
 

Picture: Giovani Cherini, project’s rapporteur (Credit: News Chamber Agency)


The leader of the PSOL, deputy Sâmia Bomfim (SP) also criticized the breaking of Caixa Econômica Federal's monopoly on lotteries. “They say it is to favor health, but in fact it is to favor the bank,” she criticized.

Deputy Darci de Matos (PSD-SC) highlighted that the two lotteries will generate additional income for health and tourism. Deputy Hildo Rocha (MDB-MA) recalled that, with the funds raised, initiatives aimed at attracting international tourists and also health actions will be financed.

Profit distribution

After the deductions provided for in the legislation, the result of the collection of games made by the Health and Tourism lotteries will be distributed according to specific criteria for each type of modality.

Numerical predictions:

  • 5% will be allocated to the National Health Fund (FNS), in the case of the Health Lottery, or to the Brazilian Agency for the International Promotion of Tourism (Embratur), in the case of the Tourism Lottery;
  • 95% to cover the operator's expenses.


Sports betting (fixed odds):

  • 3.37% will be allocated to the FNS, in the case of the Health Lottery, or to Embratur, in the case of the Tourism Lottery;
  • 1.63% for sports entities that authorize the use of brands, emblems and anthems for the dissemination and execution of lotteries;
  • 95% to cover the operator's expenses.

Prizes that are not claimed by the winners within the deadline will revert to the FNS or to Embratur, depending on the type of lottery.

The text also provides for a special distribution mechanism while the state of public health emergency due to covid-19 lasts. The emergency, however, was revoked by the federal government.

Private exploration

The proposal approved by the deputies provides that the Ministry of Economy will be responsible for the concession rules for the exploitation of the new lotteries, which must be published within 30 days after the publication of the law.

According to the rapporteur, deputy Giovani Cherini (PL-RS), this will allow the private sector to explore lotteries. In the first version approved by the deputies, there was a forecast that only Caixa Econômica Federal would hold the games.

Erika Kokay criticized the low percentages allocated to health and tourism. The opposition tried to guarantee the transfer of the total profit from the new lottery to health, but was defeated.

Already the rapporteur of the project, Giovani Cherini, highlighted that, in the total of 95% transferred to the operator, there are resources for the cost of lottery and other operational fees.

Project origin

The project authorizing the creation of new lotteries emerged in the second month of the pandemic. In May 2021, in the first analysis of the deputies, the project predicted that the funds raised would be destined for the prevention and fight against the coronavirus, while the state of emergency in public health lasted.

There was also a deadline for the Tourism Lottery, created to mitigate the economic impacts of the tourism sector in the pandemic. When passing through the Senate, the project underwent changes, which were welcomed by the deputies this Monday (29).

Among the changes are the permanent nature of the Tourism Lottery and the withdrawal of the allocation of funds raised through it to a General Tourism Fund (Fungetur) to alleviate the crisis generated by covid-19 in the sector.

The senators also expanded the modalities of the new lotteries. The deputies had approved in May the creation of numerical prediction games, in which the gambler tries to predict which numbers will be drawn in the contest, like Megasena.

In the approved text, there is also permission for the creation of sports prediction games, in which the bettor tries to predict the outcome of sporting events; and those with a fixed quota, in which the value of the prize is fixed from the beginning.

Source: GMB