JUE 3 DE DICIEMBRE DE 2020 - 17:17hs.
Sérgio Alvarenga, Intralot Brasil’s Board Chairman, at third GMB LiveSeries webinar

"The reduction in taxes allows payout increase, which is attractive to player and government"

Sérgio Alvarenga shared Intralot Brasil's ten-year experience in lottery operation in the state of Minas Gerais during the GMB LiveSeries webinar. According to him, the main innovation was the digital inclusion promoted by the company in the operation. “From the beginning, we have delivered online games to players in Minas Gerais. It is not a technological evolution because the market has had this for many years, and we have been practicing for a decade.”

According to the executive, the biggest difficulty is finding a different operation. “Minas Gerais is like a mini-Brazil and requires a complicated logistics operation and we have achieved this, in addition to showing locals the difference of not betting just on lottery shops, but in several different points of sale, as it happens all over the world,” he stated.

Regarding technology, he commented that the operation required geolocation techniques and other ways of not operating outside the limits of the state. “In addition, our payout requires a minimum of 60%, which makes it compatible with operations in other countries. All over the world gaming is already seen as entertainment and this has been important for Intralot and for all the people from Minas, who were won by our offers.” Alvarenga stated that technology brought customers closer to Intralot. "As they are registered on our website, we talk to them all the time, understanding their tastes and interacting to continue serving them well with surprises," he also mentioned.

This contact with the user, according to him, offers protection to the client, as the best practice for the operation of games. "When the player is identified, you guarantee a series of protections, both for him and for the business, as it is possible to combat money laundering and, even more, to see if the player is not a ludopath."



Alvarenga said that the identification of players is done in online operations, but that it does not exist in physical ones. “The value of our bets is R$2 and can reach, with the multiplications, R$500. We do not have very high amounts and even the payment of prizes is done at points of sale, only for amounts below R$1,000. Above that, only with us, which guarantees the safety of the entire process,” he detailed, noting that the physical retail game, such as betting on a ticket or scratch card, does not require the identification of the bettor.

Even the transfer of Intralot to the Minas Gerais State Lottery involves the issue of security to the State and the player. “The transfer is important because it involves social actions in Minas Gerais. Loteria Mineira has just invested R$ 33 million in the fight against COVID-19 thanks to resources from our contract,” he recalled.



According to Alvarenga, illegal gambling is a huge challenge. “The jogo do bicho has been operating very well for over 100 years and will only be fought with legalization. It should be brought into legality, with the government raising funds from the activity. This is the only way to have a fully balanced market.” For Alvarenga, the reduction of taxes could contribute to the increase in payout and generate that more bettors come to the legal market, leaving aside bets on illegal activities. “The only beneficiary of the payout increase is the gambler. We see sports betting operations where the payout reaches 85%. This is what regulators want: that gamblers have benefits, generate social actions by operators and games are attractive. The more you pay as a prize, the more the government collects,” he says.

On how to modernize lotteries, Alvarenga stated that all companies in the sector are willing to come to Brazil, “but what we need is to remove the role of the government, because is not its focus to develop the lottery market. The products must be in the hands of the private sector and it is very positive to see the government's position to be willing to privatize the activity,” he concluded.

Source: Exclusive Games Magazine Brasil