JUE 25 DE ABRIL DE 2024 - 12:29hs.
Eight topics

Paraná Lottery: What is already known about government's plans

Governor Carlos Massa Ratinho Junior (PSD) sent a bill to the Legislative Assembly in early October to create in Brazil the Lottery of the State of Paraná (Lotepar), an autarchy that will manage the games and will be linked to the State Secretariat of Finance (Sefa). Based on the project sent to the Assembly, Gazeta do Povo elaborated eight topics to explain the government's interest in reactivating bets and what the structure and cost of Lotepar will be to the state.

1 - What will be the value of bets and prizes to be paid?

The government has not defined issues relating to the betting itself. According to the State Finance Department, this can only be done by the direction of the autarchy that will manage the games, Lotepar, whose creation project has been submitted for approval by state deputies. Thus, the value of the prizes will also be defined.

2 – What does the government intend with the recreation of state lotteries?

The government's argument is that the bets will strengthen the state's cash flow. Sefa is even more attached to this argument because of the opportunity to recover part of the damage caused by the economic crisis generated by the coronavirus pandemic, in which there was a drop in revenue and an increase in spending, especially in the health area. With the recreation of lotteries, argues the Department of Finance, the state will be able to invest more in public policies.

3 – Where will the state invest the collection of bets?

There will be four destinations for tax collection with bets. The first two will be investments in public security and popular housing. The third destination is for social actions, especially related to the rights of the elderly. Finally, part of the money will be used in the management of Lotepar itself, with payment of salaries for servers and infrastructure costs.

4 - What will happen to the prizes that the winners don't get?

Prizes that are not claimed by the bettors will be integrated into the state treasury after one year. These amounts will be reverted to the Paraná Fiscal Stabilization and Recovery Fund (Funrep).

Funrep was created in the coronavirus health crisis in December 2020. The fund's purpose is to help the state's cash flow in cases of economic recession or fiscal imbalance, in addition to providing resources when a public calamity is decreed, as occurred in the pandemic.

5 – What will be the cost of Lotepar for the state and where will the resource come from?

Sefa calculates the annual cost of Lotepar at R$ 809,488.27 (US$ 143,825). This amount was budgeted until 2023 with a guarantee from the Finance Department that it will not affect the state's fiscal targets.

This is because the resource to open the lottery autarchy will come from the economy generated in the state's cash flow with the payment in August of the R$ 1.4 billion (US$$248m) debt with the Companhia Paranaense de Energia Elétrica (Copel) contracted in the 1990s. To settle this debt with Copel, the government raised a loan with lower interest rates from Banco do Brasil. The savings in the payment of this interest is approximately R$ 76 million (US$13.5m), precisely where part of Lotepar's resources will come from

6 - How many positions will the state create for Lotepar?

At least six commissioned positions will be created for lottery authority management. They are: CEO, institutional management director, technical coordinator, technical advisor and two vacancies for head of nucleus.

7 – Who will manage the bets?

Lotepar itself will be able to manage the lotteries. However, the project submitted to the Legislative Assembly will also allow the private sector to manage it through concessions or public permissions. The outsourced companies, however, will not be authorized to create or accredit new games, nor will they be able to supervise the bets. All these activities will be exclusive to Lotepar.

8 – How will be the control of betting?

Lotepar will adopt security systems against tampering with physical and digital tickets. In addition, operators will be required to have a certificate of adoption of responsible gaming and protection of the vulnerable, prohibiting people under 18 from gambling. Restrictions on access to computers and software used in the drawing and processing of games will also be required.

Lotepar is also in charge of auditing the equipment, processes and procedures of the bets. The autarchy will also inspect the tax and commercial books of the operators, as well as other tax documents.

Operators will still have to report fiscal data to the Central Bank. In this way, the federal institution will be able to assess evidence of fiscal crimes, in particular money laundering and terrorist financing, as stated in the bill sent to the Assembly.

Source: Gazeta do Povo