VIE 10 DE ENERO DE 2025 - 13:38hs.
Challenges

Legal scratch cards and iGaming in Brazil guarantee significant revenue for the government

With the authorization for the operation of sports betting and scratch cards starting this year, the lottery market in Brazil enters a new phase, marked by digitalization and the expansion of access to this type of entertainment. These modalities, which are in addition to Caixa's traditional lotteries, have significant revenue potential for the government, but they also bring challenges related to financial education and risk mitigation for consumers.

Lotex (Instant Lottery of Brazil), regulated by Decree 9,327/2018, will be operated by Caixa Econômica Federal on a temporary basis, until a winner of the concession process is defined. The sports betting sector, on the other hand, has undergone a major transformation: the number of companies authorized to operate fell from more than 2,000 in 2023 to just 67 this year, with only 14 having obtained a definitive license, according to data from the Ministry of Finance.

For Caren Benevento, partner at the Benevento Advocacia law firm and researcher at the Study Group on Contemporary Labor and Social Security Law at the University of São Paulo, the arrival of these modalities reflects the global trend of modernization of the gaming market.

Digitalization has expanded the scope of betting and facilitated access for the population, but it has also exposed a vulnerable segment of society to the risks of debt and dependence. It is essential that companies in this sector take a proactive role in educating gamblers about responsible gaming,” she says.

Responsible gaming mechanisms, such as the possibility of self-limiting time and amounts spent, are already present on some platforms, but there is still room for improvement. According to Caren, the approach must go beyond superficial warnings.

We need educational actions and effective technological mechanisms that allow gamblers to set limits on the amount of bets and the time they remain connected. This is not only a regulatory obligation, but a matter of social responsibility.

With the digitalization of betting and the popularization of modalities such as scratch cards and the so-called 'Bets', the consumer profile is changing. Research indicates that 'Bet' bettors are predominantly young, lower middle class, while consumers of traditional lotteries, such as scratc cards, are mostly older and belong to class C.

This diversity of profiles requires segmented communication and strategies that prioritize awareness and transparency in operations.

The introduction of these modalities represents an opportunity to direct resources that were previously destined for illegal gambling to the public coffers and the economy. However, this requires a joint commitment between the government and companies so that the growth of lottery games does not cause harm to society, such as debt and dependence,” concludes Caren Benevento.

Source: GMB