After seven failed attempts, Brazil’s government decided to relax Lotex's concession rules. If before the rules turned the dispute to the largest companies in the sector, now the technical plan relaunches the announcement to attract the attention of the companies.
The minimum amount of the grant will be about R$ 600 million (US$ 145m), and the winner of the dispute may split the grant payment in eight installments. The previous version of the announcement foresaw payment four times.
The minimum annual revenue required by the groups to participate in the competition has been reduced from R$ 1.2 billion (US$ 290m) to R$ 560 million (US$ 135m). The rest of the notice that will be known tomorrow will not suffer important changes.
"We have structured this auction to have concurrence and competition, and we are interested on attracting the best companies because the government will also win," said Alexandre Manoel, Secretary of Planning, Lottery and Energy at the Ministry of Economy.
The perspective is that the concession strongly raises the points of sale. Today, there are 13,000 points of sale and the projection is that in the coming years this network will reach 65,000 points. "The lottery market in Brazil is far from the world average and we expect an expansion of the market, with more revenues and many jobs," he concluded.
Initially scheduled to take place in June 2018 with a minimum bid of R$1 billion (US$ 241m), the Lotex auction was postponed several times and received adjustments to try to increase interest and address investor concerns.
RESOLUTION No. 64, AUGUST 21, 2019
It amends Resolution No. 16, of August 23, 2017, of the Investment Partnership Program Council of the Presidency of the Republic, which provides for the privatization process of the Public Exclusive Lottery Service - LOTEX.
THE COUNCIL OF THE INVESTMENT PARTNERSHIP PROGRAM OF THE PRESIDENCY OF THE REPUBLIC, in accordance with the powers conferred upon it by art. 7, item V, point "c", of Law 13344, of September 13, 2016, and in view of the provisions of art. 6, item II, of Law No. 9,491, of September 9, 1997, resolves:
Art. 1 The Resolution No. 16 of August 23, 2017, of the Council of the Investment Partnership Program of the Presidency of the Republic - CPPI, becomes effective with the following changes:
"Art 4° - Payment for the fixed grant may be made in up to 8 (eight) installments, subject to the following:
...........................................................................................................................................
Art. 6º ....................................................................................................................
I - experience in the operation of instant lottery service whose total collection, resulting from the sale of physical tickets and / or virtual betting, in a period not exceeding twelve (12) consecutive months, equal to or greater than R$ 560,000,000.00 (five hundred and sixty million reais); and
................................................................................................................................." (NR)
Art 2° - This Resolution shall enter into force on the date of its publication.
ONYX DORNELLES LORENZONI
Minister of State Chief of Staff of the Presidency of the Republic
MARTHA SEILLIER
Special Secretary of the Presidency of the Republic's Civil Partnership Investment Partnership Program
Source: GMB
