After six postponements, this time the bidding process for Brazil's Exclusive Instant Lottery (LOTEX) seems to continue in a normal way. Today is the last day that interested companies have to submit their documentation.
From 12 am to 2 pm today, B3 (Official Stock Exchange of Brazil, headquartered in the city of São Paulo) should receive: Proposal Guarantee, Written Economic Proposal and Qualification Documents by the companies.
Alexandre Manoel, secretary of Public Policy, Planning, Energy and Lottery Evaluation (SECAP), stated that "the decisions to change the deadlines for the submission of tenders and the auction LOTEX are taken within the scope of the committee granting this public service. However, we can affirm with total certainty that these are movements that aim to increase the competitiveness of the bidding contest."
"We can state, however, that our expectations are the best possible for the auction to be successful and LOTEX will be a great milestone in the Brazilian lottery market," added Manoel.
The opening of the written economic proposals of the proponents whose guarantees of the proposal have been accepted will be in the public session of Auction tomorrow (28th) at 10:00 a.m. On the same day, the order of classification of the tenderers will be published on the website and the qualification documents will only be opened for the company/consortium classified in first position (that is, the tenderer that offered the winning bid).
So far, it is known a strong interest of the consortium formed by the giants of the international lottery market, IGT and Scientific Games, that after analyzing the notices and with the answers of SECAP (Secretariat of Evaluation of Public Policies, Planning, Energy and Lottery) submit 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
