The fragmentation of lottery funds has been observed.

Lottery I 24.10.03

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The Superintendent of Lotteries at Caixa Econômica Federal, Paulo Campos, criticized the increase in the number of entities benefiting from Federal Lottery funds. "They are killing the goose that lays the golden eggs, because as the number of beneficiaries increases, the prizes decrease, until the day the winner will only receive a diploma," Campos ironically stated, speaking today at a joint public hearing of the Social Security and Family Committee; and the Education and Culture Committee.
The meeting discussed the allocation of lottery funds to social assistance entities. Also participating were the representative of the National Social Assistance Council, Marlene Azevedo Silva; and the director of the National Social Assistance Fund, Antonio José Henriques. The hearing was requested by Representatives Dr. Ribamar Alves (PSB-MA) and Selma Schons (PT-PR).
Excess.
Campos criticized the excessive number of bills that expand the beneficiaries of lottery funds. "Initially, these funds went only to Social Security; over time, other entities have been benefited," he lamented. "If more beneficiaries are added, Social Security is the most affected, as the net income from lotteries is more evenly divided."
Social Security is the only beneficiary that does not have a fixed percentage, and therefore receives the remaining portion of lottery revenue. Currently, it receives approximately 17,32% of the total collected, which this year represented around R$ 421 million. Therefore, the deputies believe that the debate on financing is necessary to guide opinions regarding projects related to this issue.
Dividing the cake.
Paulo Campos further explained that, of the amount collected by Caixa from the sale of federal lotteries, 48% is transferred to the legal beneficiaries – the National Culture Fund, the Higher Education Financing Fund (Fies), the National Sports Secretariat, the National Penitentiary Fund, the Brazilian Olympic Committee (COB), the Brazilian Paralympic Committee, and Social Security.
The remaining 52% goes towards the prize money, the remuneration of Caixa Econômica Federal (the Brazilian lottery operator) and the lottery vendors who sell the products, as well as the costs and maintenance of the draws. This year, R$ 1,24 billion has already been allocated to the social programs of the Federal Government. Income tax accounted for another R$ 330 million.
Paulo Campos believes that in Brazil there is still no awareness that playing the lottery benefits society. Brazilians only play for the prize. According to him, this awareness already exists in the United States, Argentina, and Italy.
No resources.
The director of the National Social Assistance Fund, Antonio José Henriques, reported that the fund has not received any resources from the Sports Lottery. "Last year, we didn't receive a single cent from the lottery revenue," he complained.
The representative of the National Council for Social Assistance, Marlene Azevedo Silva, argued that funds receiving lottery resources should be subject to the Council's oversight. "It is necessary to ensure the largest possible volume of resources for the sector," she stated.
The members of the two committees decided to create an informal working group to study the allocation of lottery funds. The suggestion came from Representatives Selma Schons and Dr. Ribamar Alves. The group will be composed of one member of parliament, one representative from Caixa Econômica Federal (a Brazilian bank), one from the National Council for Social Assistance, one from the National Social Assistance Fund, and one from the Ministry of Social Security and Assistance.
I vote against.
After listening to Paulo Campos' presentation, Selma Schons announced that she will vote against the bills that would disperse Social Security resources, in order to secure the necessary funds for social assistance policy. The congresswoman concluded that "the situation is more serious than the outcry from the base suggests."
Dr. Ribamar lamented that lottery money is not achieving its intended purpose due to the fragmentation it has suffered over the years. According to him, it is necessary to create a legal mechanism to allocate earmarked funds to the social assistance sector.
Congresswoman Almerinda de Carvalho (PMDB-RJ) noted that there is still much to clarify. "I have already asked Caixa Econômica to send us more details about the resources generated by the lotteries," she said, expressing surprise at learning that part of the revenue is included in the Union Revenue Disconnection (DRU).
The president of the Social Security Commission, Representative Angela Guadagnin (PT-SP), said that the meeting served to raise awareness among representatives about the small portion of lottery proceeds that reaches social assistance. "The working group will seek a solution so that we can implement social assistance policies," she stated.
Chamber Agency – Lílian Daher 

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