Drop in Brazilian lottery collections

In 2016, Federal Lotteries, administered by the Caixa Econômica Federal and regulated by the Secretariat of Economic Monitoring (Seae) of the Ministry of Finance, collected about USD 3.96 billion, decreasing 13.8% in relation to USD 4,61 billion in 2015. This fall in revenues was mainly due to the slowdown in economic activity last year.

Even with the lowest amount collected in 2016, more than USD 1.55 billion were transferred to investment in priority areas for the country's development. During the year, the social allocation of federal lotteries occurred as follows:

1. The national sport received USD 294 million, which went to the Ministry of Sports, the Brazilian Olympic and Paralympic Committees, the Brazilian Confederation of Clubs and Soccer Clubs
2. Social Security received USD 650 million
3. The Student Financing Program for Higher Education (FIES) received USD 370 million
4. The National Culture Fund (FNC) received USD 111 million
5. The National Penitentiary Fund (Funpen) received USD 119 million
6. The Association of Parents and Friends of the Exceptional (Apae) and the Red Cross received USD 2,75 million

In addition to these social allocations, the Brazilian government collected USD 331 million directly from the Income Tax on prizes paid. This means that of the total of lottery revenues, USD 1.89 billion were transfered to the National Treasury.

Federal lotteries have great potential for expansion in the country. Compared with what happens in the internatiobal market, few lottery modalities are explored in Brazil, substantially affecting the per capita collection. In the last five years, the Federal Lotteries collection presented the following behavior, in nominal values and as a percentage of GDP:

Source: GMB/Novo Jornal