In past attempts, uncertainty over the approval of Provisional Measure 846, which standardizes the legal framework on the distribution of lottery resources and was enacted on August 1, 2018 and approved in the National Congress at the end of November, the investors of the auction, which would be held in July 2018, but, had no proposal.
At the time, there were at least four groups interested in Lotex. Investors, however, feared that MP would change the percentage of revenue that would remain with investors. According to a source close to the transaction, a percentage of the premium below 65% would not interest investors.
The Provisional Measure 846, transformed into Law 13,756, established that of the total funds raised by Lotex, 13% will be allocated to the National Public Security Fund, 0.4% to social security; 0.9% for the Ministry of Sport; 0.9% for National Culture Fund and 1.5% for sports entities of the football modality that assign the rights to use their denominations, their brands, their emblems, their hymns, their symbols and the like for the dissemination and execution of Lotex.
Of the total collected, 65% is left over for the payment of premiums and the payment of income tax on the prize money.
After the failed auction in July, the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) even changed the date of the auction to November last year. However, due to lack of stakeholders, the date was postponed to February 2019.
The expectation of BNDES is to raise at least R $ 642 million with the payment of the grant in three years. The concession term is 15 years and the winner of the auction will be the participant that presents the highest value for the initial portion of the grant, considering the floor of R $ 156 million. In addition, the concessionaire will make three payments of R $ 162 million within 12, 24 and 36 months from the execution of the agreement. The values of the installments will be updated by the Official Brazil data.
There was no change in the assumptions of the technical and economic-financial feasibility studies. The goodwill due by the winner must be fully paid in the first installment, which is the condition for signing the contract.
The requirement was maintained that the participants have experience in the operation of an instant lottery venture. The gaming market is controlled by the government in Brazil. Caixa manages, in an exclusive character, the services of the federal lotteries.
Source: GMB / Silvia Rosa - Value
