JUE 28 DE NOVIEMBRE DE 2024 - 14:50hs.
With end of the monopoly

Pernambuco wants its own lottery, invites interested parties to carry out feasibility studies

The government of the Brazilian state of Pernambuco published last Saturday, in the Official State Gazette, a call for interested parties to carry out technical studies for the structuring and implementation of state lotteries and games. The PMI of the Secretariat of Planning and Management - Seplag - gives a deadline of July 6th to 26th for interested parties to be accredited for the event. Studies must be delivered within a period of up to 45 calendar days.

Seplag's Executive Secretariat for Partnerships and Strategies published Saturday, 03/07, Public Call Notice SEPLAG-SEPAE No. 001/2021, Procedure for Expression of Interest for any interested parties to carry out a technical-operational, economic-financial study and legal, aimed at structuring a public service concession for the implementation and operation of state lotteries and games, within the State of Pernambuco.

The accreditation of interested parties to participate in the PMI runs from July 6th to 26th and, among other requirements, the Notice requires that they be presented: "Demonstration, by skillful means (certificates, contracts, declarations, among other means), of experience in carrying out projects, surveys, investigations and studies similar to those requested”. To resolve any doubts, interested parties should send a request for clarification by July 11 to [email protected].

The objective of the state of Pernambuco is to implement its state lottery, due to the end of the Union's monopoly on the exploitation of lottery modalities, decided by the Federal Supreme Court.

In the Notice, Seplag makes it clear that authorization to carry out the studies will not be granted exclusively, nor will it create the right to reimbursement of the amounts involved in their preparation, except for the winner of this stage. In this sense, the maximum reimbursement foreseen is R$ 455,651.02, to be analyzed by the Special Evaluation and Selection Committee and will be based on market prices for services of similar size and complexity.

The Terms of Reference defines, in its introduction:

"This Term of Reference presents the context for the conception of preliminary studies, of technical, economic-financial and legal feasibility, in addition to surveys, investigations, data, technical information, projects or opinions for structuring the concession model for subsidizing purposes services for the implementation and operation of state lotteries and games, within the State of Pernambuco.”

"This Term of Reference will also present the guidelines for the preparation and presentation of subsidies by interested parties within the scope of the PMI, opened by Public Call Notice No. 001/2021."

The justification points out that the national lottery and games market currently moves around R$ 50 billion per year. “On the other hand, it is admitted that the collection of lotteries in the country is still far from its potential. In Brazil, although types of games and lotteries have been practiced for at least two hundred years, there is a consistent growth in popularity, in line with what is happening worldwide (BNDES, 2016).

The justification also points out that: “The phenomenon described above is attributed to the increasing acceptance and diffusion of digitally enabled alternatives. It is noteworthy, however, that these modalities, often unregulated, present greater vulnerabilities to the performance of organized crime and money laundering, sacrifice potential revenues, put the popular economy and, eventually, the integrity of Brazilian sport at risk.”

Seplag explains the scope of the project in the Notice:

Considering the provisions of Decree 43,000/2016, which institutes the Expression of Interest Procedure in public-private partnership projects, in the sponsored and administrative modalities, and in common concession and permission projects; it is understood that the studies must involve the necessary elements to develop solutions that contribute to the construction of a reference concession model for the exploration of the lottery business at the state level, considering the operating model, the necessary investments and the expected results for the coming years in different scenarios/sensitivities, to support the economic-financial modeling of the project and, as a consequence, the definition of the remuneration value to the Government for the privatization of the service.”

In item 4 (From Feasibility Studies), Seplag provides for the implementation of the following lottery modalities:

"I - NUMBER LOTTERY: one in which drawable elements are marketed, the prize of which is offered in cash and/or goods and the draw is made based on the results of official lottery draws or draws carried out by charitable or sporting civil associations, supervised by the State Public Administration;

"II - INSTANT LOTTERY: one with instant draws carried out on individual drawable elements, by combining numbers or symbols for the distribution of previously established prizes;

III - CONVENTIONAL STATE LOTTERY: the one with the sale of previously numbered drawable tickets, in physical (printed) or virtual (electronic) media, whose draw will be carried out on fixed dates, for distribution to those who have previously announced prizes;

IV - SPORTING PROGNOSTICS LOTTERY: lottery in which the player tries to predict the outcome of sporting events.

V - SPECIFIC PROGNOSIS LOTTERY: indication, by the player, of a set of prognoses on whole numbers and of a football club, defined as ‘Team do Coração’ (Heart Team), contained in the popularizing forms, called flyers;

VI – FIXED-ODD BETTING: betting system related to real sports-themed events, in which it is defined, at the time of placing the bet, how much the bettor can win in case the forecast is correct.

The deadline set by Seplag for delivering the studies is 45 calendar days, counting from the date of publication of the notice by the Official Gazette of the State of Pernambuco.

Interested parties can download all PMI documentation by clicking here.

Source: GMB