The Anticipated Lottery in Santa Catarina, a Brazilian State, Experiences Cancellation
Last Updated: November 15, 2022, 01:48h
Erik Gibbs
Erik Gibbs
Expertise: Gaming Business, Global Gaming
A bitter turn of events for the underprivileged citizens of Santa Catarina, Brazil, as legislation surrounding their anticipated lottery system has hit a snag. Despite initial attempts to launch the lottery, dubbed Lotesc, to support the Vivienda program in constructing housing units for low-income residents, lawmakers succumbed to pressure from diverse special interest groups and lobbyists, ultimately halting the project's progression.
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The Santa Catarina Lottery's Challenging Journey
The Santa Catarina Lottery faced significant hurdles from its inception with state leaders electing to pause its execution until this year, before making the decision to rescind the initiative altogether. Many other Brazilian states, including the Federal District and Rio Grande, have successfully adopted regionalized lottery programs following a 2020 Federal Supreme Court decision.
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Santa Catarina's Stepped Backward
The State Fund for Social Promotion and Poverty Eradication was established by Santa Catarina's administration last year, with Governor Carlos Moisés' approval. This organization paved the way for the Santa Catarina Lottery's creation to generate resources for alleviating poverty, especially in the field of housing.
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However, after receiving pressure from unnamed lobbyists, the government postponed the proposition, as reported in Local newspaper NSC.
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Context and Background
The financial crisis of 2008 brought significant changes to the lottery industry around the world, affecting its market size and growth trajectory. In 2020, the market saw a slight recovery due to various factors like relaxed lockdown measures and asset diversification by lottery operators. However, the impacts of the pandemic are still being felt, particularly in countries with a significant presence of illegal lotteries, such as Brazil.
The ongoing legal battle between Loterías Caixa and other operators to restructure the Brazilian lottery market further influences the Santa Catarina Lottery's future. With Loterías Caixa controlling the majority of significant lottery operations in Brazil, including popular games like Mega-Sena, Quina, and Loteca, this entity holds considerable influence over the industry.
Federal District and Rio Grande, have been approving regional lotteries following a 2020 Federal Supreme Court decision. Those initiatives moved forward despite attempts to halt their progress.
Expected Impact
Considering the cancellation of the Santa Catarina Lottery, the underlying intention to fund social development programs and combat poverty in the state may be affected. In the third quarter of 2022, Loterías Caixa reported record-breaking sales of R$5.6 billion, demonstrating the size of its market presence. This financial support is crucial for various social projects, including health, education, public safety, culture, sports, and tourism initiatives.
Mega-Sena, Quina, and Loteca.
The Role of Special Interest Groups
While NSC did not specify the entities responsible for opposing the lottery, Loterías Caixa appears to have a vested interest in the lottery market. Its significant market share and financial support to social development projects in Brazil—amounting to R$2.2 billion in the third quarter—suggest the potential for competition and a possible cause for opponents' lobbying efforts.
just approved new lottery products. This past September, Brazil created its new health and tourism lotteries to provide funding for both sectors. The new lotteries are now in the process of being rolled out.
New Lettery Products Approved in Brazil
Despite the defection of the Santa Catarina Lottery, new lottery initiatives were rolled out in Brazil this year to support health and tourism sectors. The federal government's approvals in September have enabled the creation of these novel lottery offerings, which are currently in the process of being implemented.
- The Local newspaper NSC reported allegedly, under pressure from unnamed lobbyists, the government postponed the Proposition of the Santa Catarina Lottery.
- Even though the Federal District and Rio Grande have successfully adopted regionalized lottery programs following a 2020 Federal Supreme Court decision, the Santa Catarina Lottery panel faced numerous challenges.
- The div containing the author's name and expertise showed that Erik Gibbs, an expert in Gaming Business and Global Gaming, wrote the news article about the unfortunate setback for Santa Catarina Lottery Project.
