Social Security and the Contribution on Revenue from Lottery and Betting Activities in Brazil

This study analyzes Social Security and the contribution on revenue derived from prognostic contests, such as lotteries and betting activities, within the Brazilian legal framework. The research is grounded in Article 195, item III, of the Federal Constitution, which establishes these contributions as one of the funding sources of Social Security. The paper examines the legal concept of prognostic contests, as defined in §1 of Article 26 of Law No. 8,212/1991, encompassing activities based on chance, including lotteries, number draws, and betting events. It further explores the structure of Social Security financing in Brazil, highlighting its contributory nature and the role of indirect funding mechanisms. Additionally, the study analyzes the allocation and distribution of revenues generated from these activities, demonstrating how public funds are directed to different sectors, including Social Security, based on specific legal and regulatory provisions. By presenting a structured analysis of revenue composition and distribution, the research contributes to a better understanding of an underexplored funding source within the Brazilian social protection system. The study adopts an inductive method supported by bibliographic and legal research. Originally written in May 2021, it reflects the legal and regulatory framework applicable at that time, without compromising its theoretical and legal foundations.