LOTEX tender is postponed for January or February 2018

The LOTEX concession process should have the bids ready for publication this October as estimated on the PPI (Investment Partnerships Program) website itself. The agenda of the project contemplated to have auctions for December of this year, something that soon will be modified and officially announced since the TCU will take more time for its analysis, approval and elevation to the Ministers.

Private companies that participated in the different road shows in London, Las Vegas and Rio de Janeiro valued the transparency of the process carried out by BNDES and the Ministry of Finance. However, for these hours they require more time and answers to doubts that arise as they become more internalized about the business.

Also, the longer term they request is key to building agreements between them and forming consortium. As the minimum investment scenario required at the starting point of the project and the obligatory expansion of points of sale demanded by the business (from 13,000 to more than 60,000), not even the most powerful companies in the market would offer alone as they need allies to contribute capitals or solutions.

The companies interested today study more in depth what the business would be like, wondering what would happen if Brazil in the 25 year period (duration of the concession) opens its gaming market completely including bingos and jogo do bicho. That possibility could diversify the spending of Brazilian bettors whose GDP per capita is not so high and thus reduce their income from the scratch cards ( raspadinha).

The companies also wonder if the expansion of points of sale in such a large country would be so simple since today there are only 13,000 lottery agencies, far from the 60,000 points needed. Beside lottery netwok, there should be added points of sale in various places that today do not explore this business.

Rumors of complete privatization of la Caixa, online betting and sports betting are other points that companies take into account in their analysis.

Caixa Económica Federal, through Caixa Participacoes, was present on all road shows made so far and its intention is to offer its knowledge of the Brazilian market and its extensive network of points of sale to form a consortium to be presented to the tender of next year.

There was the possibility of a fourth road show in San Pablo today, but it was decided to carry it out after the TCU approves the whole process, which is expected to happen only in November or December.

Source: Exclusive Games Magazine Brazil