After reviewing the economic and financial feasibility study determined by the Court of Auditors of the State of São Paulo, the Secretariat of Planning, Budget and Management promotes a new international competition for the concession of the state's lottery public services for 20 years. The decision will be held at auction at B3 on December 1st.
Whoever pays the most for the fixed grant, in addition to meeting all technical and legal requirements, will win. The minimum amount established by the government is R$ 906.4 million (US$ 172m), three times what the previous bid predicted, canceled on the recommendation of the ECA.
The concession of lottery public services determines the planning and operation of fixed betting lotteries and in the following modalities of prognostic lotteries: specific, numerical, sports, instantaneous and passive, in addition to others that can be created.
According to the economic modeling of the tender notice, over 20 years this will represent a movement of almost R$ 26 billion (US$ 4.95b) in the São Paulo economy, with R$ 12.3 billion (US$ 2.35b) for payment of prizes to the winners and more than R$ 1.5 billion (US$ 285m) transferred to the State in the form of a variable grant for social public investments in poor areas.
In the opinion of consultant and lawyer Marcello Corrêa, former legal director of Loterj, with the new economic and financial modeling and tripling the value of the fixed grant, "the new notice is in line with all the studies delivered in the PMI (Project of Expression of Interest) process and with the decision of the ECA. I dare say that it perfectly meets all the requirements for the state lottery of São Paulo to become a paradigm for other state lotteries in Brazil."
Considered one of the greatest experts in lotteries in the country, Corrêa fully agrees with the exclusive model adopted by the government of São Paulo: "We should remember that each state should seek the exploration model that best meets it and, in the case of São Paulo, the state was equipped with robust studies, including companies with international experience, pointing to the model adopted as being the correct."
The State has extraordinary potential to develop its lottery, but achieving this potential fully requires an extraordinary volume of investments in infrastructure, technology, people and marketing, which can only be a single dealer, robust and well structured, evaluates the consultant.
Not only for that, Corrêa says that the exclusivity model is strategic to face external competition, represented not only by off-shore betting and informality bets in the physical environment that exist today, but also by the national license that the federal government should regulate soon.
“Both informal market bets and bets from foreign sites need to be fought because they harm the integrity of the lottery system and the only way to face them and with the presence of a very strong player for the state, endowed with the necessary resources to successfully face them,” explains the consultant.
According to the studies, it is estimated for the São Paulo lottery a network of around 32,000 betting points generating about 65,000 direct jobs in various points of the state and the total collection of about R$ 1.3 billion (US$ 247m) in taxes.
Estimate for 20 years of concession
Source: GMB
