A resident’s gesture of solidarity to help a neighbor with medical treatment ended up in a legal alert. On Tuesday, July 26, 2022, the organizer of a R$10 raffle, which quickly raised more than R$3,000 through the sale of 300 numbers via WhatsApp, was surprised to learn that the action could be classified as a criminal misdemeanor in Brazil. The discovery highlights an important point: even with a noble cause, the legislation requires prior authorization for draws.
Understand Brazilian legislation for raffles and draws
In Brazil, the operation of lotteries, raffles and sweepstakes without due authorization from the public authorities is prohibited by the Criminal Misdemeanors Law. Decree-Law 3,688, of 1941, in its article 186, clearly establishes this restriction. It is essential to note that this legislation is more than 80 years old and remains in force, impacting several initiatives, even those that are driven by a spirit of solidarity.
The punishments provided for criminal misdemeanor
Anyone who organizes raffles or sweepstakes without the necessary approval is subject to strict penalties. The law provides for simple imprisonment, lasting from three months to one year, in addition to a fine. The strictness of the legislation makes no distinction in relation to the amount raised, who will be the final beneficiary or whether the organizer obtained personal profit from the action. Simply carrying out the draw without prior authorization constitutes an infraction.
After all, does a good cause justify the lack of authorization?
One of the most unknown points among the population is that the nobility of the cause does not serve as a legal justification for holding raffles without authorization. Many people believe that, because it is a charitable action, they are exempt from legal requirements. However, Brazilian legislation is explicit: goodwill, in itself, does not eliminate the illegality of the practice and the need to follow the rules established by the public authorities.
Common scenarios where the law is broken due to lack of knowledge
The law covers a wide range of activities, going far beyond large draws. Charitable raffles that circulate widely on social media, Easter promotions organized by small local businesses and even fundraising campaigns with prizes promoted by religious entities are subject to the same rule. Lack of knowledge about the need for prior authorization is a common factor in these situations.
- Online raffles via WhatsApp and other digital platforms
- Product and service sweepstakes for small businesses
- Fundraising campaigns with distribution of prizes by institutions
- Any activity that involves drawing prizes through the purchase of numbers or tickets
