Brazilian Lottery Landscape Poised for Transformation

A quiet but potentially important shift is brewing in Brazil’s fragmented lottery market. Daniel Romanowski, CEO of Paraná’s state lottery (Lottopar), has revealed that multi-state lottery collaborations—akin to Europe’s EuroMillions or the U.S.'s Mega Millions—could become reality within the next two to three years, despite current federal restrictions.

Romanowski’s remarks, shared in an interview with iGB, highlight a growing push among Brazilian states to challenge national laws that currently prohibit joint lottery operations across state lines. Under current regulations, each of Brazil’s 26 states and the Federal District operate their own lotteries, with no mechanism for pooling prize money or player bases across jurisdictions.

But that could change soon. “The federal [government] cannot say what the states can do,” Romanowski stated. “Basically they regulate the federal, we regulate the states.” This line of reasoning could form the foundation for a legal battle. Romanowski suggested that Lottopar, in conjunction with other state lotteries, may soon challenge federal restrictions in court. The goal: to unlock cooperative frameworks that could dramatically expand the reach and competitiveness of state lotteries, particularly those in Brazil’s less populous regions.

Historical Precedent and Strategic Motivation

Romanowski points to existing regional alliances as a model. Chief among them is the Southern Regional Development Bank (BRDE), a financial institution co-founded in 1961 by the states of Paraná, Santa Catarina, and Rio Grande do Sul to provide regional development financing. He argues that similar collaboration could—and should—extend to the lottery sector.

“Paraná could make just his bank for his people,” he said. “But he united with other states and made up a bigger bank… I believe the lotteries are the same and we can associate ourselves.”

The logic is simple: larger jackpots attract more players. For smaller or less wealthy states, the ability to offer competitive prizes is limited by population size and ticket sales. Romanowski envisions a “South of Brazil Lottery” that unites states in the region, enhancing scale and drawing more participants, which in turn would raise revenues for public welfare programs.

International precedents bolster Romanowski’s case. EuroMillions, established in 2004, spans nine European countries and regularly offers nine-figure jackpots. In the United States, Mega Millions and Powerball pool entries from 45 states and several territories, creating massive national draws.

Romanowski believes Brazil could adopt a similar model. “We probably can associate with Rio de Janeiro, with São Paulo and make one big lottery,” he said. “It’s not a problem.”

He envisions a “BrazilianMillions”—a national-scale lottery formed through inter-state cooperation. While such a move would likely face federal scrutiny, Romanowski argues that the benefits, both in terms of revenue and consumer appeal, could be too significant to ignore.

Legal Tensions with the Federal Government

However, the road to a national lottery is far from clear. Federal-state tensions over gambling regulations have intensified in recent years. A notable flashpoint came in the form of Rio de Janeiro’s state lottery (Loterj), which attempted to issue licences for operators to offer bets across Brazil—without federal approval.

In March, Brazil’s Supreme Federal Court sided with the federal government, upholding a preliminary injunction that barred Loterj-licensed brands from operating beyond Rio's borders. The decision also mandated geolocation tracking to prevent out-of-state play, reinforcing the federal government’s stance on jurisdictional limits.

This ruling underscores the legal challenges facing Romanowski’s proposal. Any multi-state initiative would likely require either a significant reinterpretation of existing law or new legislation to establish a framework for inter-state collaboration.

We know that with the lottery, it’s more [about] imagining how your life is going to change if you win that prize. If there are smaller prizes, you’re not going to have that.

The Path Forward

Despite the legal uncertainties, momentum appears to be building. With several states seeking to expand their gambling offerings and increase public revenues, the incentive to collaborate is strong. For now, Romanowski remains optimistic. “We have our own houses of law here,” he said. “So I believe we can associate in the near future, in like two or three years.”

If such partnerships do materialize, they could reshape Brazil’s lottery sector, potentially marking a pivotal shift from a patchwork of isolated state-run games to a more unified, competitive national market.