"In a monopolistic market LOTERJ would have to paralyze the operation"

GMB - What is the position of LOTERJ regarding the proposal of the Ministry of Finance to create a monopoly of instant lotteries?
SÉRGIO RICARDO DE ALMEIDA - The position of LOTERJ is, and always be, defend the interests of the people of the state of Rio de Janeiro, especially in the defense of thousands of people who directly or indirectly benefit from the lottery activity and from our social actions. Unfortunately, there has been a misunderstanding by the Secretariat of Economic Monitoring (SEAE) of the Ministry of Finance on the issue of the exploitation of lottery products and, consequently, its competence in the supervision and regulation of State Lotteries. The exploitation of Lotteries is not one of the Union monopolies provided for in the 1988 Constitution. But the Union has exclusive power to legislate on the subject. Accordingly, SEAE, whose function is to regulate markets and defend the economic order, we expected an action aimed at the development of a modern legislation aiming at the implementation of a fair and competitive model, providing the best public service of lotteries to citizens and not the search for a monopoly model to be delivered to private initiative in international competition.

What is the biggest impact that the monopoly will bring to the projects developed by LOTERJ?
Initially, we want to emphasize that the monopoly is absolutely unconstitutional and it hurts the federative pact. In a monopoly market, without the State Lotteries, LOTERJ would have to paralyze the operation of both the Raspa Rio, the traditional scratch cards and the Rio de Prizes, a product of Conventional Lottery. These are products that are part of the life of Rio de Janeiro people, moving millions of reais per week, countless jobs and intense commercial movement in our more than 4,000 points of sale spread throughout the municipalities of the state. We are very honored to say that LOTERJ, since 1940, has transformed the lives of millions of people, and that is something it can not stop and will not end.

In addition to the pressure in the Chamber of Deputies, what other actions is LOTERJ programming against the proposal of the Ministry of Finance?
I would like to thank, first and foremost, the full support of the Federal Deputies of the state of Rio de Janeiro, which, regardless of its party color, knows and recognizes the importance of LOTERJ in the economy of our entire state as a generator of employment, income , and, mainly, social work developed in all 92 municipalities. It is also important to highlight the support of the staff of our State Attorney General's Office. I will send, in the next few days, a letter to the Secretary Mansueto so that SEAE, fulfilling its legal function, will hold a meeting with all State Lottery partners for a broad debate to prepare a legal legal framework that adapts to the reality of the best international practices. We will use all administrative, political and judicial resources within our power to defend the interests of LOTERJ and the State of Rio de Janeiro.

What does LOTERJ propose as an alternative against the monopoly of lotteries?
The creation of a new legal system and the approval of a bill that deals with the coexistence between State Lotteries and federal Lottery. It is noteworthy that in the project already approved by the Commission on the Regulatory Framework for Gaming in Brazil, in the Chamber of Deputies, we managed to include a chapter on State Lotteries, which clearly demonstrates the intention of the National Congress in this regard. The alternative to monopoly is a free and well regulated market, where State Lotteries and the Federal Lottery can have a healthy dispute by the bettor, promoting a competition where the big winner is the population, who will receive a bigger and more customized offer of products and greater coverage of their onlending to social projects. Whenever we travel to events and congresses and follow the lottery industry in the world, we realize that large continental countries, such as Brazil, use the state or regional lotteries model, allowing the configuration of more specific and agile services for each place. And they come together to produce national products, with great prizes, like Powerball. These are the cases of the United States, Canada and Australia. That is, we understand that local products can coexist with large national products, respecting the characteristics of both, in their commercialization and in their application of social resources, or of the federal government applying in national and structuring projects such as states reaching the cities by applying their resources to projects that directly serve those who need it most.

What is LOTERJ's expectation as to the responsiveness of the Ministry of Finance to its proposals?
We are sure that given the legal and technical depth of our administrative response to the Technical Note of SEAE, it will put the best of its qualified staff for a thorough evaluation not only of our arguments but of the social and political impact that it can cause. We believe that the Ministry of Finance has the best of intentions and an absolutely qualified team to consider this position and start the negotiations with a view to creating a national model for the exploitation of lotteries, joining forces for modern legislation and protecting both States and Federal Government to bring Brazil to meet the best international practices.

What kind of negotiations is LOTERJ preparing for?
LOTERJ is open and eager to move forward with the new legislation. Both the State Lotteries and the Federal Lottery only have to win with this new model. Brazil is a country with continental dimensions and very strong regional characteristics, making this coexistence a strong point in the new exploration of lotteries in Brazil. Thus, the States, the Federal Government and the population gain, with more products and greater support for social and structuring projects.

Source: Exclusive GMB