Ministry of Finance issues COMMUNICATION about raffles in Brazil: could arrests happen?

Can raffles end? Government has just sent a very important message to people who insist on participating in raffles in Brazil; know everything!

Recently, the Brazilian Ministry of Finance issued a statement clarifying the legality of raffles in the country, a common practice among digital influencers who accumulate millions of followers.

The promotion of raffles has been the subject of police investigation in several states, leading to the arrest of influencers on charges of criminal association, money laundering and embezzlement. Let’s understand more about this complex scenario and the legal implications of raffles in Brazil.

Ministry of Finance issues COMMUNICATION about raffles in Brazil: could arrests happen? Credit: Reproduction.

What are raffles and how do they work?

Raffles are sweepstakes where participants purchase numbered tickets with the hope of winning prizes and rewards.

In theory, all raffles are illegal in Brazil, except those held for philanthropic purposes. According to the Ministry of Finance, holding raffles is classified as a criminal misdemeanor, similar to gambling, with prison sentences of three months to two years and fines of R$2,000 to R$200,000.

Illegal raffles are the target of investigation in Brazil

Digital influencers have been the focus of police investigations due to the promotion of illegal raffles on platforms such as Instagram.

The practice, which has affected millions of users, resulted in the arrest of several influencers. The accusations range from failure to deliver the promised prizes to the suspicion that the winners are people known to the organizers, who later return the items.

After all, are raffles legal or illegal?

The Ministry of Finance clarifies that, except for philanthropic raffles, all raffles are, in principle, illegal.

Philanthropic draws are permitted as long as there is prior authorization from the Ministry of Finance, granted only to legal entities.

To obtain this authorization, it is necessary to send a request to the Commercial Promotion Control System (SCPC) and present one of the 13 purposes defined by legislation.

Even for regular draws, the Ministry of Finance prohibits the distribution or conversion of prizes into cash, a common practice among actions promoted by influencers.

Furthermore, sweepstakes that provide an immoderate profit or become a source of income are also not authorized.

An analysis of 193 profiles of influencers who run raffles revealed that many use similar methods to promote websites where users can buy tickets and participate in the draws.

These websites often do not provide information about the company responsible for the draw, the authorization number from the Ministry of Finance or contact details, raising suspicions about the legitimacy of the operations.

The future of raffles in Brazil

Recent actions by the Ministry of Finance and police investigations highlight the need for greater control and transparency in raffle activities in Brazil.

While the practice remains popular on social media, it is essential that both organizers and participants are aware of the legal implications to avoid future penalties and arrests. This announcement serves as a warning that raffles are conducted legally and ethically in the country.

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