At the event, IGT was represented by Roberto Quattrini, Director and Country Manager Brazil, and Scientific Games by Michael Conforti, President of Global Strategic Accounts.
According to the edict, the minimum amount for the initial installment referring to the grant was R$ 96.969.123,51 (U$S 23.5m), in addition to seven other fixed installments of R$ 103 million (US$ 24.95m) to be paid annually, adjusted by INPC, referring to the burden of grant. The concession term is 15 years. The announcement was coordinated by the Secretariat of Evaluation, Planning, Energy and Lottery of the Ministry of Economy (Secap / ME) and launched by BNDES, at the end of August.
For Secap - responsible for regulating the lottery sector in the country - the concession will guarantee competitiveness for the Brazilian market with the break of the sector’s monopoly. “The LOTEX auction is emblematic. It represents the break of a 58-year monopoly of the national lottery industry. It represents openness to competition and a paradigm shift for the country,” defends the secretary of Evaluation, Planning, Energy and Lottery, Alexandre Manoel.
LOTEX was included in the PND (National Privatization Program) in January 2016. The state's first auction was scheduled for June 2018, but no one submitted a bid. Since then, the BNDES, responsible for the sale process, has been publishing new edicts with adjustments to make the sale of LOTEX to the private sector more attractive. Initially, the government had set a minimum bid of R$ 1 billion (US$ 242m) in a single installment. With the lack of interest in previous edicts, this value fell to about R$ 540 million (US$ 131m), with the possibility of several installments.
Collection
According to Law 13,756 / 2018, the federal government will be the main beneficiary of the concession, as it has 16.7% of revenues, in addition to the taxes coming from the concessionaire and the income tax of the award winners. The collection of these resources is directed as a source of funding for a series of public policies, such as safety, sports and culture, for example.
Historic
Since the 1960s, pursuant to Decree Law 50,954 / 1961, the operation of lotteries was considered a public service of the Union, and only Caixa Econômica was authorized to operate the service.
Today, the lottery modalities explored in the country are: numerical predictions (in which the player tries to predict which will be the numbers drawn in the next contest, such as Mega Sena and Quina, for example) and sports forecasts (in which the player tries to predict the result of sports games, but the gain is only known after the completion of sporting events, such as Loteca and Lotogol, for example).
Another possibility - not yet officially operated in Brazil and which is currently being regulated by the Ministry of Economy - is the fixed-odds sports betting which, at the time of betting, the player already knows how much he can win in the event of a hit.
The Instant Lottery, which from next year will be operated by the auction-winning private company, was operated by Caixa until 2014. The winning company will operate LOTEX nationwide, through physical retailers and electronic channels such as the internet and smartphones.
Worldwide leaders
IGT
International Game Technology PLC (IGT PLC) is an end-to-end gaming company. The Company is engaged in operating and providing an integrated portfolio of technology products and services across various gaming markets, including lottery management services, online and instants lotteries, electronic gaming machines, sports betting, interactive gaming and commercial services. Está orientada a los servicios integrales para los sectores comercial y gubernamental. La empresa se fundó en 1990 y tiene oficinas en Londres, Roma, Providence y Las Vegas; y cuenta con 12 000 empleados.
Listada na Bolsa de Nova York, a IGT se declara a maior do mundo. Ela sempre mantém um escritório em São Paulo, à espera da legalizacion do cassinos, retomar os negócios suspensos desde a proibição dos bingos em 2004 e oportunidades de invertir y hacer negócios em el pais como ahora com LOTEX.
IGT specializes in the fast delivery of high-quality instant ticket games and services as an end-to-end provider. With the industry’s largest, fastest, and highest quality press and the utmost commitment to customer service, company is rapidly changing the face of the instant ticket industry.
Its segments are North America Gaming and Interactive (NAGI), North America Lottery, International and Italy. NAGI develops and delivers games, systems and solutions for land-based casinos, Interactive for-wager online play, and the DoubleDown Casino free-to-play social casino application. The North America Lottery segment develops and delivers Lottery solutions. The International segment delivers end-to-end solutions across all channels and regulated gaming segments. The Italy segment operates and provides a range of business-to-consumer (B2C) gaming products.
SCIENTIFIC GAMES
As a global leader in the gaming and lottery industries, Scientific Games’ mission is to empower customers by creating the world’s best gaming and lottery experiences. Its interactive and instant lottery games are designed to reach players wherever they are, whenever they want to play, and in any channel they choose: casino, retail or digital. SC fornece jogos, tecnologia e serviços para mais de 150 loterias em todo o mundo, incluindo quase todas as loterias da América do Norte.
For more than 85 years through our acquired companies, Scientific Games has delivered what customers and players value most: trusted security, creative content, operating efficiencies, and innovative technology. Headquartered in Las Vegas, Nevada with approximately 9,500 employees worldwide, SC serve their customers from manufacturing, printing, and commercial facilities on six continents.
Through four operating divisions – Gaming, Lottery, Digital and Social – SC offer customers a fully integrated portfolio of technology platforms, robust systems, engaging game content, and unrivaled professional services and marketing solutions.
Its portfolio includes gaming machines and game content, casino management systems, table game products and services, instant and draw-based lottery games, server-based gaming and lottery systems, sports betting technology, lottery content and services, loyalty and rewards programs, interactive gaming and social casino solutions.
Source: GMB
