Lottery Operations Coming to Federal District, Brazil

Posted on: May 12, 2022, 05:45h. 

Last updated on: May 12, 2022, 11:31h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

Brazil’s gaming ecosystem continues to grow. Federal District, one of the country’s 27 recognized states, is going to introduce a new lottery following parliamentary approval this past Tuesday.

Federal District, Brazil
The National Congress of Brazil in Federal District. The district is advancing new lottery options after the courts ruled the federal government does not have exclusivity. (Image: Pinterest)

Brazil continues to shape its gaming space. Lotteries and sports betting are the most prominent targets, although there is still hope to find online casinos.

Last Tuesday, the Legislative Chamber of Federal District (CLDF, for its Portuguese acronym) approved a bill that launches a lottery for the district. Parliamentarians agreed on Bill 2.312/2021 after the government agreed to two agendas, one from the evangelical bench and the other from the political opposition.

The lottery will prove beneficial to sports organizations in Federal District. Some 5% of the revenue will go to them, with the government allocating another 2% to cultural and sporting events for activities with people with disabilities.

Brazil’s Gaming Ecosystem Advances

The amendment of the religious political bench prohibits the company that manages the lottery from having a relationship with casinos and bingos. This was a condition by evangelical politicians who are resistant to Bill 442/1991. Currently, that legislation is in the Senate, and provides for the legalization of gambling in the country.

The opposition’s proposal ensures that Banco de Brasília (BRB) becomes the district lottery manager. However, the change in the proposal generated discussion in the plenary. Júlia Lucy of the União Brasil (Brazil Union) party, who chairs the Commission for Sustainable Economic Development, Science, Technology, Environment and Tourism, excluded the section.

The author of the amendment, Congressman Chico Vigilante, wanted João Hermeto de Oliveira Neto, Federal District’s district deputy. Despite the latter’s objections, lawmakers eventually approved the measure following input from committees.

Vigilante hopes that this will help ensure transparency and legitimacy of the lottery operations. He pointed out that BRB’s profit remains in the Federal District, aiming “to give good life to Brasilia.” Brasilia is the capital city of the district.

The president of CLDF, Rafael Prudente, asked for flexibility after the analysis. “Lottery services already exist in Brazil. We are just sharing the market with BRB not to leave [lottery operator] Caixa Econômica alone, which is good for Federal District,” he stated.

About the Federal District Lottery

The bill, a suggestion of the Executive Branch, was drafted after a decision by the Supreme Court in 2020. It established that the federal government does not have exclusivity for lottery services.

Thus, the states and the Federal District have the competence to create and operate activities related to the lottery and gaming sectors. At the same time, the federal government retains the prerogative to stipulate the rules of activities.

Governor Ibaneis Rocha must sanction a District Lottery within 30 days. The hope is for bets to take effect in a maximum of three months. It is possible that the competitions will start no later than October under the auspices of the BRB.

The potential revenue for local sports and community organizations is substantial. The lottery can provide fixed revenue, according to Congressman Eduardo Pedrosa. He added that athletic associations and teams of all levels will benefit financially from the new lottery options.