success was short-lived due to inadequate government control. In 2000, it was discovered that bingo hall owners were trying to illegally bribe government officials to allow them to house more gaming machines on their premises. Te federal government closed down entry to the bingo market and licences were blocked from being renewed. At the end of 2002, all federal bingo licences expired. Later a number of bingo halls in Brazil were able to remain open by individual judicial court orders.
In 2004 a scandal broke involving a gambling boss who had contacts with an aide to the president's chief of staff. President Lula tried to ban bingo halls outright in order to ward off a congressional probe into the accusations. 30,000 bingo hall employees took to the streets in protest but to no avail. All the same a small number a number of bingo halls in Brazil were able to remain open by individual judicial court orders. However, in 2007 the Supreme Court ruled for once and for all that states could not issue laws for regulating bingo halls.
THE ANIMAL GAME
Also key to understanding the market is Te Animal Game (jogo do bicho). Te largest illegal lottery in the world since the 1970’s and 80’s the game began innocuously enough originating as a raffle at a zoo in Rio de Janeiro in 1892. A numbers game where animals represent numbers it has been prohibited by federal law since 1946 apart from the state of Paraiba. Run by organised crime tickets can be bought on street corners throughout Brazil, yet law enforcement turns a blind eye in return for
P70 WIRE / PULSE / INSIGHT / REPORTS
bribes. Meanwhile selling and taking part in the lottery is only categorised as a minor offense and operates openly. Easy to understand and play the game is very much interwoven into everyday life and is very much part of Brazilian culture. It is estimated that the game generates between US$350 to US$800m a year with around 20 million people playing the game every day.
STATE RUN LOTTERIES AND THE SUPREME COURT
Te biggest shake up to the lottery sector is now imminent. In September 2020, the Supreme Court of Brazil ruled that the federal government's lottery monopoly was unconstitutional, paving the way for states to develop state lotteries for each of Brazil's 26 states and one federal district as long as they comply with federal regulations. Tis means that current operators can extend their offerings while states will begin to roll out their own lottery products within their own state borders.
Te ruling came after the state of Rio de Janeiro took the federal government to the Supreme Court of Brazil (STF) when the federal
government directed the state to shut its lottery operations after the lottery began to offer new games. Attorney General of the State of Rio de Janeiro argued that due to the closure of the Rio de Janeiro State Lottery (Loterj) in 2017, they would lose more than $3.5m per year. Te STF is the court of last resort of Brazil, and its rulings cannot be appealed.
Te STF decision could also open up the sports betting market as well. Online and land based sportsbetting was permitted by the federal government in December 2018 via Law No. 13,758/18. Sportsbetting was categorised as a lottery. Consequently all states could possibly operate sports betting within their territories.
State governors and other lawmakers are already moving ahead with plans to offer sports betting alongside other plans to launch and expand their own lottery products. In April State Deputy Alexandre Knoploch introduced Bill 3885/21 which would give Loterj the right to operate fixed-odds betting on sporting events
Te biggest shake up to the lottery sector is now
imminent. In September 2020, the Supreme Court of Brazil ruled that the federal government's lottery monopoly was unconstitutional, paving the way for
states to develop state lotteries for each of Brazil's 26 states and one federal district as long as they comply with federal regulations.
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