Loterj, which has operated lotteries in Rio de Janeiro since 1975, is experiencing an excellent moment after the public hearing to collect contributions for the elaboration of a public notice for the exploration of new lottery modalities. The company's president, Oswaldo Luiz Pacheco Ribeiro, says that in the short term the bidding will be on the street and will allow the state to raise more funds to face social actions in Rio de Janeiro.
Check out the main excerpts of the interview below:
GMB - What analysis do you make of the end of Union’s monopoly for the exploitation of lotteries, now that the certificate of final judgment of the action that ran in the STF has been published?
Oswaldo Luiz Pacheco Ribeiro - Our understanding, which has been that of Loterj since 1975, is that the Union never had this monopoly, otherwise Loterj and other state lotteries could not exist. The STF's decision came to pacify the issue with the final decision, which said that we have total autonomy to exercise the games in the States based on lotteries also operated by the Union. Thus, I do not see such a monopoly of the Union, which has the same right than the states to work on the lottery modalities.
Loterj was very quick to convene interested parties in the exploration of new modalities of instant lotteries and numerical prognosis. How is this subject?
Through our management, we try to run ahead, because whoever runs ahead gets there first. We held the public hearing on January 22 and the Public Notice is in the final stages of preparation. We had 35 interested in our future Notice and I hope they will appear when the bid is placed on the market.
How has Rio de Janeiro’s state government shown itself in the face of this new reality with the possibility of increasing products, creating other modalities and the participation of Loterj in the lottery market? Are you excited about the new possibilities for creating new lotteries to generate funds for use in social areas?
Certainly. Mainly because in 2020, due to the types of games we have, which are not online, we had a lot of financial difficulties. With the possibility of opening for online games and other modalities, the government cannot wait to put the bidding on the street to reap the rewards to be destined to the social area, Loterj's main activity, which allocates 70% of its profit in the social area.
And when will the Public Notice be ready?
Coming soon. I do not want to give a certain date, as it does not depend only on Loterj because it has to go through other control bodies, such as the Court of Auditors, the State Prosecutor's Office and the Controllership. But in the very short term, the Notice will be published.
What to expect from the new modalities to be launched?
All will be provided for under federal law. We want to put into operation all possible modalities, mainly using technological support through online options. As I said, what affected us in the collection in 2020 is because we do not have any online modality and with the pandemic everything was impaired.
In addition to the online lottery, is Loterj also focused on sports betting?
Certainly. That will be the icing on the cake. According to the opinion of the Supreme Federal Court, in my view, it is that we do not need to wait for the regulation of the activity by the Union. The STF gave the states full competence to operate lottery modalities provided for in federal law.
You have already commented on the financial crisis caused by the pandemic and the fact that Loterj does not have online modalities. How was Loterj's result in 2020?
The result was positive, as we adopted strategies to achieve this, but far below what we would have with the online option. We need the circulation of people, as our points of sale had a decrease in movement. Although we did not have a lockdown, the significant decrease in people circulating and shops closing in some periods, the collection was well below what it should have been.
Do you believe that the release of other games, such as bingos, casinos and jogo do bicho, could help in the recovery of Brazil's economy?
Certainly, in every way. Gambling is entertainment and entertainment leads to tourism, and this leads to fundraising and international visibility. Brazil is a country of continental dimensions. We have coasts and other wonderful areas to be explored and these locations are eager to receive money, even for the pandemic, just as everyone else does, like the United States and even Paraguay, Uruguay, and Argentina. They all have casinos, and they make money from it. Brazilians go there to play, and this is not illegal. I hope that the National Congress has the same vision and sensitivity that we have in the presidency of Loterj.
Loterj itself went through another phase when the bingos were in operation in Rio de Janeiro!
Certainly. Many charities received money for their costs and several municipalities in Rio de Janeiro received ambulances. So, it really was an important phase. Taxes go to states, municipalities and the Union, and this translates into benefits for society in general. Play whoever wants and even responsible gambling is part of the process to curb abuse by gambling addicts. Brazil, the largest country in South America, is very likely to receive tourists from all over the region, but it does the opposite. Tourists leave here to play in South American countries. It is time for the National Congress, even due to the STF's decision, to put this into practice based on federal legislation. It would be the jump of the cat and a goal for Congress.
And would Loterj be prepared to take control of bingos and jogo do bicho, since casinos may be under federal tutelage?
There is no problem. We have a technical staff for this and with technology, we only need to increase the technological capacity to carry out the control. I see no difficulty with that. We already had bingo control in the past and we will not need to reinvent the wheel, just put it to spin.
Source: Exclusive GMB
