Prospects for Multi-State Lotteries in Brazil: Insights from Daniel Romanowski
Daniel Romanowski, the CEO of Paraná’s state lottery (Lottopar), envisions a future where multi-state lotteries become a reality in Brazil, potentially within the next two to three years.
Current legislation in Brazil prohibits state lotteries from forming alliances similar to the EuroMillions in Europe, where multiple jurisdictions collaborate to create larger jackpots. However, Romanowski is optimistic that Lottopar, along with other state lotteries, may soon challenge these constraints in the Federal Court. He argues for the states’ rights to join forces in expanding their gambling offerings.
“The federal government cannot dictate what the states can or cannot do,” Romanowski asserts in discussions with iGB. “Their regulations cover federal matters, whereas we oversee state affairs.”
He believes that states, having their own legal frameworks, can indeed partner for mutual benefit in the near future.
Historical Context for State Partnerships in Brazil
Romanowski underscores that there is a precedent for inter-state cooperation in Brazil, noting the establishment of the Southern Regional Development Bank (BRDE) in 1961, a collaboration among Paraná, Rio Grande do Sul, and Santa Catarina. He argues that just as these states banded together to enhance their economic standing, lotteries could similarly unite to create a more competitive gaming landscape against larger states like Rio de Janeiro and São Paulo.
“Pragmatically, Paraná could have formed its own bank,” he points out, “but joining forces with neighboring states resulted in a more powerful financial institution equipped to serve a broader population.”
Benefits for Smaller States in Lottery Collaborations
The lottery industry operates on the principle that higher jackpots attract more participants. This is particularly crucial for smaller states, which often have limited player bases and smaller prize pools. Romanowski proposes the idea of a “South of Brazil Lottery” to bolster competition against larger states with vastly greater populations.
“We are nearly 12 million strong in Paraná,” he states. “In contrast, some states have populations around 700,000, which could benefit from coming together to create more enticing lottery offerings.”
He emphasizes that the allure of a lottery lies in the transformative possibilities it presents, suggesting that smaller prizes might fail to generate the same level of excitement among potential players.
Emulating Successful Global Lottery Models
Romanowski draws parallels with successful lottery systems like EuroMillions and Mega Millions, suggesting that Brazil could develop a similar cross-regional lottery, tentatively dubbed "BrazilianMillions." He believes that partnerships with states like Rio de Janeiro and São Paulo could create substantial jackpots that draw in larger player bases.
“States such as Rio de Janeiro and São Paulo can easily collaborate to launch a substantial lottery,” he notes. “Successful models worldwide, including EuroMillions and Powerball, demonstrate the power of unity in maximizing prize pools.”
The Tension Between State Lotteries and Federal Oversight
The relationship between state lotteries and the federal government in Brazil is currently fraught with tension, highlighted by the challenges faced by the Rio de Janeiro State Lottery (Loterj) in their attempts to secure national licensing for brands across Brazil.
Loterj argues that its state license should grant it the authority to enable licensed brands to operate nationwide without seeking federal approval. However, recent rulings from the Supreme Federal Court have reinforced federal control, restricting Loterj-licensed brands from accepting bets outside of Rio de Janeiro and imposing geolocation measures for compliance.
In summary, while the journey toward multi-state lotteries in Brazil is fraught with hurdles, Romanowski’s vision highlights the potential for collaboration and innovation in expanding the country’s lottery landscape, ultimately benefitting both the states involved and their citizens.