VIE 3 DE MAYO DE 2024 - 20:13hs.
Model will be permission/authorization

Mato Grosso do Sul opens accreditation for lottery and sports betting operators in the state

The Brazilian State of Mato Grosso do Sul has opened accreditation for those interested in operating the state lottery. By public call 001/2022, permit holders will be able to explore all modalities currently established by federal law. Four lots are defined: instant, predictions, passive and sports betting. The value of each grant is R$ 500 thousand (US$ 97,000) per lot.

The Official Gazette of Mato Grosso do Sul published this Friday (12) the public call 001/2022, which opens the accreditation for the selection of companies for the development of the state lottery. The format will be permission/authorization and interested parties will be able to qualify in all the modalities provided for in the Public Notice, divided into four lots, namely:

  • Lot I – Instant – modality that immediately shows whether or not the player has been awarded any prizes
  • Lot II – Prediction contest – which covers numerical prediction contests in which the bettor tries to predict which numbers will be drawn; the specific prognosis established by Federal Law No. 11,345, of September 14, 2006; and sports prediction where the bettor tries to predict the outcome of sporting events
  • Lot III – Passive – modality in which the gambler purchases an already numbered ticket, in physical (printed) or virtual (electronic) media and waits for the draw to know whether or not he has been awarded the prize, random draw is prohibited
  • Lot IV – Fixed-odds sports betting – modality consisting of a betting system related to real sports-themed events, in which it is defined, at the time of placing the bet, how much the bettor can win in case his prediction is correct.

During the accreditation period, all applicants who meet the specifications of the Notice will be accredited and the permissions or authorization will be issued according to successive criteria:

  1. Order of receipt of the application through the Sefaz protocol; and
  2. One permit per lot for every 2 (two) million inhabitants in the state territory.

All modalities can be explored in physical or digital media, using technologies present in the lottery market, including those available on the internet. Delivery of the applicant's documentation will begin 8 (eight) business days after the Public Call is published in the DOE for a period of 30 (thirty) days.

Accreditation requests will be processed according to the chronological order of the request protocol and Sefaz will issue a permit for each lot (I, II and III) and authorization, specifically for lot IV, to those accredited.

The term of permission and authorization will be 5 (five) years, counted from the date of signature of the term. Such period may be extended for an equal period, by reasoned decision of Sefaz.

In the Accreditation and Permission Term, the interested party must indicate the percentage to be paid monthly to the government of Mato Grosso do Sul as royalties for the exploration of each chosen lot.

In the call, the government of Mato Grosso do Sul explains, among other things, that:

“3.4. After carrying out studies, it was understood that the best model for implementing the State lottery is described below:

3.4.1. Public Call with financial and technical qualification criteria related to the sector - following the guidelines of the Federal Audit Court - TCU, as in the Judgment 141/2013-Plenary.

3.4.2. Assessment of requirements submitted by interested parties.

3.4.3. Permission and Authorization, according to the lottery modality, of multiple operators in free competition, that is, all interested parties who fulfill the requirements of the Public Call will be accredited, for a period of 5 (five) years. It should be noted that as it is a selection based on art. 25 caput of Law no. 8,666/93, we recommend that the same period of competition be determined (art. 21, § 2, I of Law n. 8,666/93) for interested parties to present their accreditation requirements with a view to obtaining permission or authorization.

3.4.4. Each Operator may explore products related to the Lottery Modality allowed, as provided by law, provided that it obtains individual permission for each Lot or authorization in the case of the Lot that includes the fixed-odds sports betting modality, and within the limits of the state of Mato Grosso do Sul, through physical and non-physical means, similar to Caixa Econômica Federal's online Lottery and Federal Government projects such as LOTEX provided for in Federal Law 13.155/2015 and Fixed Quota Sports Bets provided for in Law 13.756/2018.

3.4.5. Operators must commit to “Responsible Gaming” and regular supply of the service, having at least one lottery unit in operation in each municipality in the state.

The document defines that the Lottery Superintendence of the State of Mato Grosso do Sul will function mainly as a regulatory agent for the services provided by the Licensee and Authorization Holders.

The payment for granting the Permission and Authorization has a value defined at R$ 500  thousand (US$ 97,000) per lot requested and granted, and must be paid within a maximum period of 5 (five) days from the issuance of the Permission or Authorization.

Technical certifications

The Call Notice defines that:

8.1. Certifications according to the lottery product to be explored may be obtained from certifying companies accredited by the SUPERINTENDÊNCIA DE LOTERIA DO ESTADO DE MATO GROSSO DO SUL  (MATO GROSSO DO SUL STATE LOTTERY SUPERINTENDENCE) or, alternatively, from certifying companies with notoriety and international recognition, within a maximum period of up to 12 (twelve) months from the start of activities.

8.2. The following are the technical certifications relating to good market practices for lottery operations involving draws and registration of bets:

8.2.1. For Numerical Prediction Lottery - GLI-15- Electronic Bingo and Keno Systems and GLI-19- Interactive Gaming Systems certification.

8.2.2. For instant lottery, when operated in a virtual environment - certification- GLI 14- Finite Scratch Ticket and Pull-Tab Systems, GLI-20- Kiosks and GLI-21- Client-Server Systems or GLI-23- Video Lottery Terminals.

8.2.3. For fixed-quota lottery, when exploited in a virtual environment - certification- GLI 33- Event Wagering Systems.

8.2.4. The Lottery Superintendence of the State of Mato Grosso do Sul may include or exclude the above certifications in order to adapt the modalities.

8.2.5. In addition to the above certifications, the lottery operator must have an International Certification for the Random Number Generator - RNG standard, which must certify the certification that proves the randomness of the results automatically generated by the solution for calculating prediction games, validating the application code, physical exams components used to obtain results and mechanized draw systems, where applicable.

Technical attestations are also required as a requirement for Permission or Authorization and they include, among others: certificate of technical capacity that proves the minimum number of physical points of sale in the State or active customers registered on their own database; proof of compliance with the Compliance policy, in accordance with the applicable standards (ISO 37,301, or similar); proof of compliance with responsible gaming policies in accordance with the standards - WLA-RFG - World Lottery Association Responsible Gaming Framework - level 3, or similar.

Source: GMB