Now, Lotex's concession term will be 15 years and not more than 25 years, as initially was defined. In addition, the government has decided to change requirement on the level of experience with the operation of lotteries that will be required of the proponents. Thus, those interested in the bidding must prove that they already operate lotteries whose revenue from the sale of bets is equal to or more than R$ 1.2 billion (US$ 370 million), in a period not exceeding 12 calendar months. Before the announced changes, the requirement was a minimum revenue of R$100 million (US$ 30m) with the sale of tickets.
The PPI states in the resolution that the amendments took into account the contributions of "potential stakeholders" in the auction formalized in the process of public consultation and hearing of the process.
The Lotex concession to the private sector is part of the federal government's collection effort. Estimates are that betting revenues double with privatization, jumping rapidly from R$ 6 billion (US$ 1.85b) to at least R$ 12 billion (US$ 3.7b), a resource that can help bolster Treasury cash for years to come as bills remain in red. The government expects the Lotex concession dispute to involve international companies with experience in the electronic gaming business.
Source: GMB
