DOM 5 DE MAYO DE 2024 - 07:09hs.
Competition for conventional and instant lottery

Hebara and the IGT/SG/Saga BGI consortium continue in Loteria Mineira bidding

The Lottery of the State of Minas Gerais received two proposals from companies interested in operating the instant and conventional lotteries in International Competition 001/2023, which will deliver the two products to the private sector. Hebara, which already operated lottery modalities in Rio de Janeiro, and the consortium formed by IGT/Scientific Games and Saga BGI, an investor with extensive knowledge of the market, were the ones that presented themselves for the event.

The deadline for delivery of envelopes for those interested in operating the instant and conventional modalities of Lottery numbers in the State of Minas Gerais ended on Monday this week (27) and on the morning of this Tuesday (28), the Bidding Committee verified that two companies had delivered the qualification documentation (envelope 1) and the commercial proposal (envelope 2).

The analysis of all documentation for qualification continues until Friday (31), when Hebara -which operated lotteries in Rio de Janeiro for years- and the consortium formed by renowned multinationals IGT and Scientific Games and the Brazilian Saga BGI -an investor with extensive knowledge of the local market- will have their price envelopes opened by the Commission in case they have complied with all the requirements of the Notice.

The winner of the bidding will be the one that offers the highest transfer to the Lottery of the State of Minas Gerais.

The international competition will grant the operation of instant and conventional lotteries in Minas Gerais for 20 years, in a contract that provides for the collection of R$ 5 billion (US$ 960m), with a minimum transfer of R$ 500 million (US$ 96m) to the State.

The company that wins the international competition will have a schedule of implementation phases, aiming at the start of commercial exploitation of the games, as provided for in the Notice.

By traditional lottery games, it is understood the instant lottery, commonly called ‘raspadinha’ (scratch card), and the conventional lottery, which uses the drawing of balls, which was LEMG's flagship in the past.

The concessionaire company will be responsible for strategic planning services, product creation, printing solutions, implementation and operation of lottery products, marketing, storage, creation and operation of the distribution network, commercialization and payment of prizes.

The Public Notice began to be prepared in 2021 and Loteria Mineira sought the best international practices and the most successful models in the world. Last year, three public hearings brought together the main players in the global lottery market and national companies with the technical capacity to operate the modalities in bidding.

Prior to the hearings, in order to provide maximum transparency to the process, LEMG had already received contributions through the Expression of Interest Procedure (PMI) and public consultation.

In these meetings, several contributions were made and clarifications requested so that LEMG could put the bidding on the air at the beginning of this year. Both Hebara and the IGT/SC/Saga consortium participated in this stage, made suggestions and raised questions regarding the process.

The interest that the tender aroused in the market confirms this, as the Notice, published in Portuguese, attracted not only national but also international companies. One of the requirements of the Notice, the commitment to issue 90 million cards or R$ 90 million (US$ 17.3m) in a single period as a technical qualification, proved to be feasible, since it allowed the participation of several companies.

Commitment to social

The Deputy Secretary of Finance, Luiz Claudio Gomes, celebrates the success of the bidding process up to this stage and recalls that the purpose is to attract resources to the state coffers and, in the case of Loteria Mineira, destined to finance programs aimed at well-being social assistance and programs in the areas of assistance, sports, education and health of the population of Minas Gerais.

"The vocation of this government is to attract investments to Minas Gerais, providing a safe environment for business and making life easier for companies, without burdening the taxpayer's pocket with more taxes. The Loteria Mineira is a source of non-tax resources, that is, which do not result from the creation or increase of taxes. In the current management, the Lottery has already allocated more than R$ 80 million (US$ 15.4m) to finance social programs carried out by the Government of Minas Gerais," says the assistant secretary.

Source: GMB