Loteria Mineira, through its agreement with Intralot, is planning to introduce new types of games, including instant lotteries and sports betting, after the Federal Supreme Court of Brazil (STF) unanimously decided that the Union doesn’t have the exclusivity to operate lottery games in the country, meaning states can expand their offerings.
Sérgio Alvarenga, President of the Intralot Council of Brazil, said that the new games can generate between $8m and $10m for social programs in Minas Gerais. It will also help the state navigate its financial crisis, as reported by BNL Data.
Alvarenga said: “We aim to rapidly develop any gambling option contemplated in our contract and in our relationship with Loteria Mineira. I think that, at the latest in January, we can have new modalities.”
In addition, the Loteria Mineira will have the right to approximately 30.1% of the revenue from the new games.
Alvarenga added: “A few days ago, the lottery transferred $5.9m to the State Department of Health to treat COVID-19. This Supreme Court decision will bring an additional and important new source of income for the states.”
Alvarenga also assured that Intralot trusts that the sports betting sector will be strengthened through agreements with lotteries and the national operator, Caixa Econômica Federal. An early activation of the new proposals will end up in a rapid growth of the expected Brazilian gambling market.
The STF decision detailed that the Union has the exclusivity to regulate lotteries, but there is no clause that specifies that it has the right to a monopoly. In other states, the next step will be to pass laws to build a structure to operate lotteries and create public entities to monitor the activity.