A group of Brazilian state lotteries has created a trade body to represent the industry’s interests during a time of regulatory change.
The Association of State Lotteries of Brazil (ALEB) was set up by the Paraná State Lottery (Lottopar) alongside the state lotteries of Mato Grosso do Sul, Maranhão, and Minas Gerais with the objective of representing the ‘common interests’ of state lotteries.
Brazil is home to countless lotteries, with various states possessing a government-run lottery, while there is also a federal lottery. A regulatory grey area surrounds the existence of municipal lotteries, present across thousands of municipalities and cities.
Urging the government to clamp down on these municipal lotteries, which are permitted by a Supreme Court ruling that the federal and state governments do not have a monopoly on lotteries, but which often overlap on the jurisdiction of state lotteries, may be an objective of the newly formed ALEB.
It is notable that the Paraná State Lottery, one of the key driving forces behind the new organisation, has been open in its opposition to municipal lotteries in the past. Daniel Romanowski, CEO of the lottery, told SBC Noticias – Brasil earlier this year that “‘today, our understanding is that they are illegal.”
Although not referencing municipal lotteries in its founding statement, the organisation also appears to dismiss the notion of multi-state lotteries in Brazil. A requirement of membership is that prospective member lotteries must adhere ‘to the constitutional understanding that states may only operate lotteries within their geographical boundaries’.
The statement reads: “The Association keeps its doors open for the entry of new states. However, it establishes as an essential condition for membership the strict compliance with the territorial limitation of lottery operations, a guideline provided for in its Bylaws.”
As described by the Paraná State Lottery, the ALEB’s founding objective is the ‘strengthening, defense, and development of the sector nationwide’. It further lists its objectives as follows:
- To represent the interests of its members.
- To contribute to policy development relating to lotteries.
- Support intensity, governance, compliance, responsible gaming and social responsibility actions.
- Strengthen the overall lottery ecosystem by promoting institutional alignment, technical qualification and integration.
The ALEB’s creation comes just under a year after the launch of Brazil’s nationwide betting market under the ‘Bets’ regulatory regime on 1 January.
This has presented new competitors to established lotteries in the many betting operators that have set up shop in Brazil since, but also opportunities for new products, with ALEB members like the Minas Gerais lottery setting up a sportsbook proposition.