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How Brazil’s lottery reform could influence U.S. prize pool

Brazil’s new revenue split could inspire U.S. lotteries to increase prize funding and rethink how payouts are structured.

Brazilian flag
Todd Betzold

Brazil is considering a major overhaul of its lottery system. These changes would look to modernize operations, adapt to digital sales growth, and rebalance how revenue is distributed. Lawmakers have created a bill that would benefit both physical retailers and digital platforms. These changes could create a more stable and equitable financial structure for the country’s lottery operations. This has people asking: Should the United States take note?

Brazil’s sweeping lottery changes

These changes in Brazil include longer concession terms, shared operational costs, and a two-part revenue distribution system. This revenue system is designed to reward productive outlets while also ensuring that smaller sellers remain financially stable.

Yes, these changes are aimed at Brazil’s domestic market. However, U.S. lotteries may be watching this very closely. They want to see how a rebalanced model affects prize funding, sales, and player engagement.

Key features of the Brazilian reform

The bill in Brazil establishes that retailers will receive a portion of funds based on physical sales performance. Meanwhile, the remainder is shared across all licensed outlets.

The bill also requires digital payment costs to be split between operators and retailers. This reflects the growing reliance on online transactions.

In addition, concession holders would be authorized to sell all federal lottery products in both physical and digital formats. This modification is intended to lessen any discrepancies between the channels and aid in streamlining operations.

In order to promote investment in technology, modernization, and compliance, the country will employ longer-term licenses (25 years with an optional 25-year renewal).

Digital fairness and player impact

Ensuring that digital and physical channels are treated equally is one of the reform's primary goals. Rules won't apply to one, but not to the other. They will be implemented on both kinds of platforms at the same time.

This will help to avoid a situation where traditional retail outlets' protections are surpassed by those of online-only products.

It illustrates a larger lesson for American lottery players: you can guarantee more stable prizes and consistent availability by striking a balance between digital growth and physical accessibility.

Why does this matter to U.S. lotteries and players?

American lottery operators, like the California Lottery or New York Lottery, should think about adopting similar strategies if the reforms in Brazil demonstrate that a more equitable income share improves stability and raises overall sales.

These changes could have direct benefits for U.S. players:

  • Bigger prize pools due to more efficient revenue allocation
  • More frequent bonus drawings or seasonal promotions
  • Enhanced second-chance and loyalty programs
  • Better support for lottery retailers, which could help reduce outages and improve ticket availability

In actuality, a successful model elsewhere might persuade U.S. lotteries to reconsider the allocation of operating expenses, which could ultimately improve the player experience.

What comes next

What will happen next in Brazil? The Chamber of Deputies is now reviewing the reform measure in committee. Lawmakers will examine its operational and economic viability there.

The lottery industry around the world is keeping a careful eye on the outcome, which is still unknown.

American lotteries might try to adopt this new approach if it is successful in stabilizing operations and increasing prize potential. This could improve player experiences and open up larger jackpots and incentives.

Brazil may provide a model for future lottery changes that will ultimately benefit players on both sides of the equator as lotteries around the world tackle the transition to digital and the requirement for equitable revenue sharing.

Enjoy playing the lottery, and please remember to play responsibly.

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