GMB - You, as CEO of Sorte Online Group, have already arrived as one of the precursors in the field of online lotteries. Now, you have has plans to open BRLOT. What services will the new company offer and what will its target audience be?
Marcio Malta - The Sorte Online Group has over 18 years of experience in the internet lottery market and BRLOT was born from this expertise, with the mission of offering all the necessary resources for state governments to create and implement their lotteries.
By acting as the best One Stop Shop solution, BRLOT will provide solutions for three important pillars of this segment:
● Product development: assistance in brand creation, game mechanics, revenue and profit sharing, means of payment etc;
● Implementation of the infrastructure: development of the entire digital platform, solutions for POS and terminals, production and distribution, among others;
● Commercial and product operations: generation of consumer demand, implementation of customer service, in addition to the promotional sales calendar.
In general, BRLOT will assist state governments in the whole process of creating and selling their lotteries following the best practices in the global market; for example, with the use of systems that prohibit money laundering, guaranteeing information security, certification that bets are placed by real people and policies that prevent addiction or damage to players.
In order to carry out this consultancy work offered by BRLOT, have you mirrored the management of private lotteries around the world? Which country stands out the most in this field and which should be followed in your point of view?
Yes. The public-private partnership is essential for business modeling, so it will be done in four hands with governments. The "consultative" work is done in this way, so that all interests are equalized, that is, offering attractive payouts, profitability to the government, transparency, and compliance in business management for the society and competent bodies.
Finally, we will follow global good market practices against money laundering, cyber security, responsible gambling and LGPD (General Data Protection Law), but the goal is to create a unique offer that fits the economic and social reality of each state.
In terms of benchmarks, we look at different markets. One of the most advanced in the world, in the United Kingdom it is a government initiative, but operated by a private player. We consider the Czech Republic the best model, where the operator just needs to acquire the government license and start operations. Australia is also a well-balanced market between public and private initiative and one that inspires us.
Do you believe that existing state lotteries can improve their service and reach a wider audience?
Yes. The legal security arising from the unanimous decision of the Supreme Court will attract more investors and increase competitiveness in the sector, which in the end will bring an increase in the quality of services provided to states and their citizens.
What is your point of view in relation to the online service offered by the existing state lotteries?
It is promising, but still with a lot of room for improvement. Among them, a more efficient operation based on omnichannel distribution criteria. Nowadays it is no longer possible to talk about business on or offline, as consumers and points of sale work more and more integrated with the online world.
How do you see this opening of the market for the establishment of new lotteries in states where previously there was no? Is it positive for the industry as a whole (operator, state and public)?
The measure, certainly, should greatly benefit the federative entities, since the capacity to generate revenue from the collection of bets is enormous and can reach hundreds of millions of reais, according to estimates. But the advantages of opening the lottery market go much further, as they impact the generation of jobs; the possibility of more people improving their lives by winning big prizes; in the offer of more modalities in the market, boosting the sector and heating the economy; creating partnerships with points of sale that can boost local commerce, etc.
There is also the indirect positive impact on the public, since the money that is passed on to state governments through the collection will be used in important areas for the entire population, from health and education to public security, and the best, without the need for create new taxes. The gains for all components of this product are numerous and, without a doubt, very positive for any party involved.
Could this decision by the Supreme Court be a gateway to the legalization of other traditional games in Brazil, such as joog do bicho and bingo?
Not directly. We understand that there is a maturity for the culture of transparent and regularized gambling. We follow the agenda strategically and believe in a more transparent and organized market, mixing public and private initiatives for these next chapters. Our expectation is to act only on regulated models.
Have you been keeping an eye on the fixed-odds sports betting market? Does Sorte Online have plans to enter this business as well?
It all depends on regulation. The sports betting market became very competitive before final regulation. We believe that this year there must be some definitive decision on this agenda in the government. With that, we will analyze with our board what is the best way to compete in this market.
When do you intend to launch and start trading BRLOT? What are the Sorte Online Group's plans for 2021, a year that continues to deal with lockdown because of COVID?
We are in the final stage of corporate structuring. In parallel, we strategically follow the formal movement of the states, which are moving very quickly in the formalization of Public Consultations, PMIs and tenders. Our expectation is to be able to bid by the end of this month.
Source: Exclusive GMB
