LUN 29 DE ABRIL DE 2024 - 02:19hs.
In letter to Bolsonaro

Febralot considers “a disaster” the tender of 7000 new lottery stores

The Brazilian Federation of Lottery Companies (Febralot) released last week a note stating that it had sent Caixa and President Jair Bolsonaro a letter to oppose the bank's intention to bid for another 7,000 lottery stores in the country and said that the measure would represent a disaster to the network. According to the federation, the spraying of the activity will only increase in a predatory way the competition, condemning entrepreneurs who still support themselves.

Check out the complete Febralot's note:

Febralot sent a letter to the Caixa Econômica Federal at the end of March and also at the beginning of April to the President of the Republic, Mr. Jair Messias Bolsonaro, condemning the possible 7,000 new bids of lottery stores. In the document in question, the Federation points out that, as provided for in item V, of article 3, of Law No. 12,869 / 2013 and also in item 13.1 of CAIXA Circular 745/2017, a technical feasibility study is required so that new stores are open, and this has not been done or has been shown neither to the Federation nor to the general population, which should have knowledge.

An example of what can happen can be illustrated with the following case. An account of a Lottery entrepreneur from Paraná says that in a town next to his (Nova Aliança do Ivaí) the owner of a Lottery Unit closed the month with a maximum collection of R$ 300 (US$ 78) in games and, as in the municipalities with few inhabitants to lottery house is sometimes the only bank, the businessman cannot keep up his operation with so little collection. It is worth mentioning that gross collection in places such as these ranges from R$ 2000 (US$ 520) to R$ 3000 (US$ 780) per month. Conclusion, the unit closed the doors for not being able to pay its expenses, and few businessmen will risk trying to reopen this unit, which will take of the population one of the few, perhaps the unique, bank position for its accounts payments.

The situation is critical and could be even worse if more than 7,000 lottery houses are opened nationwide without proper feasibility study. This study should, as required by Febralot, be included in the descriptive body of the bids so that future candidates have a real knowledge of the viability of the investment (high) that they think to make. This is not done and is a way to inform the inexperienced entrepreneurs who want to work in the sector, that the risk is much greater than it seems and depending on the locality the activity already failed before it even starts.

Today, the Lottery Network is composed of about 13,000 units that efficiently meet 100% of the population's needs. There are more than 100 million people served and there is no need to increase the number of units, especially considering that most of the current entrepreneurs are already indebted.

Febralot requires that the current stores should be seen as priorities by Caixa's manager and not as a second option. This pulverization of the activity will only increase in a predatory way the competition, definitively condemning those entrepreneurs who miraculously still support themselves. In addition, Caixa presents a surplus of billions, year after year in the presented balance sheets and with the biddings would achieve a record turnover, however several businessmen who are already in the activity are going through problems that for years do not remove them from the bankrupt situation they are. It is necessary that the population and the related organs are aware and support this cause.

What the Brazilian Federation of Lottery Companies asks for is pure and simple compliance with the Law, which in itself already eliminates the possibility of further this disaster for the Category.

Soure: GMB / Febralot