JUE 28 DE MARZO DE 2024 - 07:49hs.
Auction will be on May 28

Deadline for companies to submit proposals for LOTEX expires today

After six postponements, this time the bidding process for Brazil's Exclusive Instant Lottery seems to continue in a normal way. Today is the last day that interested companies have to present their documentation. From 1 p.m. to 6:00 p.m., the B3 (Official Brazilian Stock Exchange, headquartered in the city of São Paulo) should receive: Proposal Guarantee, Written Economic Proposal and Qualification Documents by the companies.

The tenderers who are eligible to participate in the Auction's Public Session will be announced on May 27th, while the opening of the written economic proposals of the proponents whose offer guarantees have been accepted will be announced at the auction's public session one day later (28) at 10:00 a.m.

On the same day, it will be published the order of classification of the tenderers and will be opened the qualification documents only from the company/consortium classified in first place (that is, from the bidder that offered the winning bid).

So far, it was known the strong interest of the consortium integrated by the giants of the international lottery market, IGT and Scientific Games, which after analyzing the edicts and with the responses of SECAP (Secretariat for Evaluation of Public Policies, Planning, Energy and Lottery) to their queries, they would present a proposal.

On May 13, the Ministry of Economy responded to an inquiry from IGT and Scientific Games. If the winning company's refusal to sign the Concession Agreement arises from a non-agreement with Caixa for the use of its lottery network, a fine corresponding to the full amount of the Proposal Guarantee will be applied but will not be imposed a sanction of temporary suspension of participation in bidding. Thus, fined companies may still participate in new sports betting auctions.

The collection expectation of BNDES with the grant is at least R$ 642 million (US$ 159m) over 3 years. The concession term is 15 years. Before, the government spoke in a minimum bid of R$ 1 billion (US$ 247m).

According to the development bank, companies with proven experience in the market of instant lotteries "with operations at levels compatible with those designed for Lotex" may participate in the auction.

The participant who presents the highest value for the initial portion of the grant will be the winner, considering the floor established by the government of R$ 156 million (US$ 38.5m). In addition, the concessionaire will make 3 payments of R$ 162 million (US$ 40m) within 12, 24 and 36 months from the execution of the agreement.

Source: GMB