Proposal to be regulated by Ministry of Economy with revenue to finance Health and Tourism
Brazil’s House of Representatives has approved a bill authorizing the federal government to create health and tourism lotteries, which includes operations of physical and virtual sports betting that may be exploited by a private company.
According to the bill, part of the profits collected will be destined to finance the National Health Fund (FNS), in the case of the Health Lottery; and another part for the Brazilian Agency for the International Promotion of Tourism (Embratur).
The proposal was proposed by Rep. Giovani Cherini, who said: “This lottery will be the best option to pay the nurses basic wages. The Ministry of Economy will manage it, as it has a competent sector for this to supervise operations, so everything will be within the law.”
Cherini highlighted that Caixa Econômica Federal (CEF), which operates Brazil’s largest lottery, is not prevented from participating in the contest to organize the lottery. “We want to open up the possibility to the private sector,” he added.
On the matter of profit sharing, the bill states that after deductions provided for in the legislation, revenue generated the Health and Tourism lotteries will be distributed according to specific criteria for each type of modality.
Numbers lotteries:
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, with 95% to cover the operator’s expenses.
Sports betting:
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, and 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 The emergency, however, was revoked by the federal government.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 Rep. Cherini, this will allow the private sector to explore lotteries. In the first version approved by the House, there was a forecast that only Caixa Econômica Federal would operates lotteries.
