State lotteries are unable to advertise online due to lack of Bet.BR domain.

State lottery operators in Brazil are unable to advertise on digital platforms. Big Tech companies require the Bet BR domain, an authorization granted by the federal government that is not available to the state segment. The problem was discussed in a panel held on Wednesday (9) during the BiS SiGMA event, which addressed the theme “Operator in State Lotteries: Business Models, Compliance and Operational Efficiency”.

Participants in the debate included Eduardo Paiva, CEO of the Tocantins Lottery (Lototins), Everton Sales, Operations Director of the Sergipe State Lottery (Lotese), and Joberto Porto, CLO of CDA Gaming . The moderator was Marcello Corrêa, CEO of Axis Veritas Consulting.

Digital platforms prevent ad boosting.

Digital platforms block the boosting of ads from operators that do not have the BetBR domain. Legalized state-run operators are treated as irregular by Big Tech companies.

“ Big Tech companies require operators to own the Bet BR domain, an authorization granted by the federal government that is not available to state lotteries,” stated Eduardo Paiva, CEO of Lototins.

The executive explained that the situation creates a bottleneck in digital marketing . Operators are seeking alternatives such as using influencers or concentrating their efforts on the physical market.

Business models require adaptation to state-specific characteristics.

The operator's role in state lotteries requires business models compatible with the specificities of each regulatory framework, combined with compliance and operational efficiency. Sustainability, competitiveness, and execution capacity then depend on a consistent balance between performance, control, and institutional adaptation.

Each Brazilian state has specific characteristics that demand differentiated strategies. The lack of national standardization forces operators to develop customized solutions for each market, considering everything from regulatory aspects to regional cultural and economic particularities.

Physical retail gains strength in the face of restrictions.

Everton Sales presented the Sergipe model. The Operations Director of Lotese highlighted that physical retail represents a robust opportunity in the face of difficulties in the digital realm. Sales especially emphasized the Video Lottery Terminals (VLTs).

The executive stated that the operation in Sergipe aims for operational maturity by 2027. The physical environment allows for the inclusion of an audience that is not accustomed to digital technology, in addition to offering legal security and legitimacy to the public service.

Sales observed that the physical operation of light rail vehicles (LRVs) depends on good internet connectivity. This factor can represent a challenge in more remote regions in the interior of the states. Adequate technological infrastructure therefore becomes a critical element for the operational efficiency of the physical model.

Compliance faces different levels of requirements.

Joberto Porto emphasized that compliance is a central, yet complex, pillar. In states where the lottery is a public company, the level of compliance requirements is even higher. The process involves oversight bodies such as Courts of Auditors.

The CLO of CDA Gaming pointed out that each state has a different level of regulatory maturity. Some regulators are open to dialogue. Others refuse to talk to operators.

Porto highlighted the lack of technical knowledge on the part of some regulatory bodies regarding basic concepts in the sector. The executive specifically mentioned aggregators and platforms as examples of unfamiliar concepts. This knowledge gap hinders the development of regulatory frameworks that are adequate to the market's needs.

Operations in Sergipe face an extra layer of regulation.

Sales explained that the operation in Sergipe faces an extra layer of regulation because it is linked to a public bank. The Sergipe lottery operates through a joint venture with a state bank.

Simultaneous compliance with the Central Bank, state regulatory agencies, and audit courts makes the process slower, although more secure. The executive reported that this structure adds complexity to the operation, but also provides greater institutional credibility to the business model.

This specific configuration demonstrates how different institutional arrangements directly impact operational efficiency and compliance costs, requiring operators to be able to adapt to multiple regulatory layers.

Overlapping regulations create operational uncertainties.

The overlap between federal and state regulations creates operational uncertainties. Joberto Porto highlighted that the absence of the Bet BR domain for state operators generates confusion among consumers.

Eduardo Paiva mentioned that the lack of support from the federal government and the spread of fake news by political opponents generate instability. The executive cited cases where first-instance court decisions, based on misinformation, harmed the reputation and functioning of operations, even when these were in legal compliance.

The lack of uniformity among states hinders compliance. Each Brazilian state has a different level of regulatory maturity, without national standardization. This regulatory fragmentation negatively impacts the ability of operators to develop long-term strategies and achieve economies of scale.

Regulators should act as partners of the sector.

Joberto Porto argued that state regulators need to act as partners. The executive stated that it is necessary to maintain an open dialogue with operators to educate the market and society, going beyond simple oversight.

Participants highlighted that the regulator has a duty to educate society about regulated gambling. This includes combating false narratives and helping to legitimize the operation in the eyes of the public.

Marcello Corrêa suggested that state regulators should officially request the Bet.BR domain from the Ministry of Finance. Another alternative would be to obtain official clarification recognizing the legality of state operators. The moderator emphasized that this institutional coordination is fundamental to resolving the impasse that prevents digital advertising of state lotteries.

Technical training can improve regulation.

Joberto Porto pointed out that many regulators are still learning about the market, including concepts such as aggregators and platforms. Investing in the technical knowledge of public servants would facilitate the creation of more appropriate regulations.

Creating clearer and more consistent guidelines would help operators better navigate between state requirements and international compliance practices . Empowering regulatory bodies represents a strategic investment that can accelerate the sector's maturity and reduce legal uncertainty.

The transfer of knowledge between more advanced states and those in the early stages of regulation was also identified as a valid strategy to accelerate the development of the national market.

The sector has potential despite the challenges.

The panelists unanimously agreed that the state lottery sector has immense potential. This assessment was made despite the regulatory complexity and political attacks faced by those who are pioneering the market.

The experts' final recommendation was perseverance. The industry is large, generates jobs, and has a clear social function. The experts stated that it is a matter of time and maturation for the Brazilian market to fully consolidate.

Experts indicated that the sector will continue to seek alternatives to overcome limitations in digital marketing , such as the use of influencers and the concentration of efforts in the physical market. The operation in Sergipe will follow its schedule until it reaches operational maturity in 2027. Operators should maintain dialogue with state regulators to educate the market and society about the sector.

The panel highlighted that, despite the obstacles, building sustainable business models, coupled with strict compliance and operational efficiency, represents the path to consolidating state lotteries as a relevant and legitimate segment of the gaming industry in Brazil.