BNDES makes clear to LOTEX investors that capitalization bonds are not about lottery

1)  Is it correct to understand that the Superintendency of Private Insurance - SUSEP is not competent to regulate and / or authorize the operation and sale of products related to instant lottery services, especially considering Federal Decree No. 9,266 / 2018, which assigns to the Secretariat for Fiscal, Energy and Lottery Monitoring the competence to propose, coordinate and execute, within the Federal Government, the policy and regulation of lotteries?

It is correct the understanding.

2) Is it correct to understand that the object of the Concession Contract related to this privatization is the exclusive exploitation of the public instant lottery service and, therefore, according to the Bidding Document and the applicable legislation, the Concessionaire will be the only one authorized to operate the services instant lottery?

The Concession Agreement is clear in determining that its object is to operate the Exclusive Instant Lottery Public Service - LOTEX.
 

3. Considering that (i) SUSEP is not competent to regulate and authorize services related to lotteries, including instant lotteries; (ii) publication of SUSEP Circular No. 569/2018, which establishes rules for the capitalization transaction, the modalities, preparation, operation and sale of Capitalization Bonds, including those that have instant premiums; and (iii) the lottery character of the Capitalization Bonds, is it correct to understand that Articles 9 and 10 of the SUSEP Circular No. 569/2018 condition the draw made by means of instantaneous prizes to the signing of a commercial agreement between the Concessionaire of the LOTEX service and the person responsible for the lottery, pursuant to art. 7 of SUSEP Circular No. 569/2018?

The understanding is not right. Circular 569 of May 2, 2018, issued by the Superintendency of Private Insurance (SUSEP), published in the Official Gazette of the Federal Government on the date of yesterday, has exclusively the scope, elaboration, operation and commercialization of Securities of Capitalization.

In this sense, it is a regulation limited to the operation of Capitalization Bonds, and there is no determination in that instrument regarding the future commercialization of the Exclusive Instant Lottery (LOTEX).

Source: GMB