Lotex is the modality in which the bettor knows if he won any prize at the time he scratches the card. The official estimate is that it can generate more than R$ 15 billion in sales in five years (the government has a 16.7% share of gross revenue).
The auction was held in October 2019 and won the consortium Estrela Instantânea, formed by gaming giants IGT Global Services (British) and Scientific Games Corporation (American).
The result was celebrated by the economic team, which before that had to postpone the auction at least five times. After the event, however, the companies presented, in a meeting with Minister Paulo Guedes (Economy), requirements not foreseen in the public notice to proceed with the process.
The most recent alert was made in September, when companies told Guedes that they will not continue with their commitments if Caixa does not sign an agreement to assign the lottery network for ticket sales.
With the agreement, companies would gain a shortcut to sales, as it would not be necessary to build a wide network of alternative marketing outlets across the country (which could include partnerships with bars and newsstands, for example).
Caixa's lottery chain currently has about 13 thousand units, one fifth of the 65 thousand points of sale provided for in the business model prepared by BNDES (National Bank for Economic and Social Development).
Experts with knowledge of the Lotex process point out that another possible reason for the agreement would be for the company to enter into a partnership with Caixa to reduce the risk of being harmed by the bank's state competition (which could be helped by regulatory acts).
In any case, the companies have already closed negotiations with Caixa on the terms of the contract in early July, and are now awaiting a vote by the state bank's board of directors and also a decision by the bank's board of directors. So far, none of these actions have taken place.
Among the commitments to sign the concession contract is a minimum contribution of R$ 200 million from the winners in the capitalization of Estrela, pay the first installment of the license fee and remunerate B3 and BNDES for the services provided throughout the process.
Caixa is in a period of silence on the topic. Internally, the agreement is still being analyzed by the directors and there is still no conclusion about the business advantage.
People accompanying the concession point out that, for Caixa, the deal would make sense because it would generate another source of revenue for the bank, which would be remunerated by the agreement, as well as the owners of the lottery units (which receive a percentage of sales).
Caixa stopped operating Lotex after CGU (Comptroller General of the Union) identified that the bank's remuneration model did not have due legal support. The suggested paths were the reduction of the percentage earned or the concession of the service.
The decision for the concession was taken during the Temer government. After successive presentations of the asset to international investors (the so-called “road shows”) in cities like London and Las Vegas, the government made the first auction attempt in July 2018. But it had to postpone it due to low interest.
The government continued to postpone the dispute. New dates have been scheduled at least five times. Scheduled for February 2019, the auction was canceled the day before. The justification of the technicians of the economic team for the successive postponements since the Temer government was the concern of the companies with the legislation, with the electoral process and, later, with the change of the government.
In the final stretch, only two companies were interested in the dispute, precisely IGT Global Services Limited and Scientific Games Corporation. The two ended up coming together to evaluate a joint offer. Meanwhile, they were already demanding answers from the government like what would happen if they gave up the asset after the auction.
According to the announcement, companies are subject to penalties in case of non-compliance with commitments that may include the loss of the value of the proposal's guarantee, of R$25 million (which has a maximum term of one year, a term that is already running out).
Source: Fábio Pupo - Julio Wiziack / Folha
