According to the parameters of the sale announcement, the Brazilian companies do not meet the minimum requirements, said Angelo da Silva. Therefore, a possible scenario for the sale is the association of a foreigner with a local company, that currently produce, print or market the tickets. Overseas companies must come mainly from USA, Europe and Australia.
Asian lottery operators have been tracking the government in the first phase of road shows, which were held in London and Las Vegas before the announcement of the bid, the secretary said. In the road shows made after the announcement, which came out earlier this month, they have not expressed interest, as the North American and European have already done. Angelo da Silva says that the US and European companies came to offer suggestions in the public consultation of the sale process.
The sale of Lotex, with a minimum grant of R$ 542 million (US$130m), can more than double the size of the lottery market in Brazil, said the secretary. Today this sector represents 0.2% of the Gross Domestic Product (GDP) and the projection is that this participation can reach 0.5% in five years. Angelo da Silva points out that the government has the monopoly of the instant lottery sector (the scratchcards) since 1962 and the sale of Lotex should stimulate competition.
This market handles about $ 300 billion a year in the world and is dominated by "three or four" large operators that account for 80% of the sector, according to the secretary. In Brazil, it ranges from US$ 3 to US$ 4 billion.
Without Caixa Economica Federal. The secretary participated yesterday in São Paulo of the 5th Brazilian Gaming Congress “Driving Consensus for Legislative Progress in 2019.” At the event, the head of the BNDES Privatization Department, Guilherme Albuquerque, stressed that state-owned bank Caixa could not participate in the auction.
The National Bank for Economic and Social Development (BNDES) has already held two meetings with potential stakeholders at Lotex. The last one happened in Rio de Janeiro, on the 17th. The previous week, it was held in São Paulo. Through talks with investors, Albuquerque says the government "is convinced that the June auction will be a significant success."
"This market has great potential for growth," said the BNDES executive, noting that the spending per capita in Brazil with lotteries is US$ 18, while in the world it is US$ 40. "Brazil is one of the largest unexplored markets of instant lottery in the world. "
In practice, the Lotex concession represents the withdrawal of the instant lottery business from Caixa's hands. The public bank, however, will maintain the other lottery modalities.
Source: GMB
