Brazil advances bill to redefine rules for lottery outlets

A new bill in Brazil, introduced by Deputy Fausto Pinato, is now moving through Brazil's Chamber of Deputies with the goal of overhauling the regulatory framework that governs the national lottery network.

The proposal amends current laws, arguing that the rapid expansion of digital gaming and changing consumer behaviour have created structural imbalances between physical lottery outlets and online channels.

The bill redefines what constitutes a lottery "permission" and clarifies that both individuals and legal entities may obtain authorization to commercialize all federal lottery products.

It also states that remuneration must ensure the economic sustainability of the retail network, with compensation for operational failures, including those stemming from technological infrastructure.

Under the proposal, regulations issued by Caixa, who manages lottery work in the country, would apply uniformly to both physical and digital sales channels.

One of the key changes concerns revenue distribution.

For both physical and electronic sales, the minimum remuneration for retail units would equal 50% of the amount allocated to operating and logistical costs.

Online commissions would be split into two components: one based on each outlet's physical sales performance, and another shared equally among all active units, equivalent to 4.75% of gross revenue.

Operational costs would also be redistributed. Fees charged by card and electronic payment systems would be divided equally between Caixa and the outlets.

The proposal further extends the duration of lottery permissions to 25 years, with automatic renewal for an equal period unless contractual breaches occur.

Pinato also argues that declining physical revenues, driven by the growth of online gaming, require a modern remuneration model.

The bill will now proceed to the relevant committees for analysis before any floor vote.