Almost 50 people, including representatives of close to 15 possible explorers of future lottery modalities in Minas Gerais, were present this Wednesday (9) at the public hearing held by Loteria Mineira. The goal of the meeting was to hear contributions and clarify doubts for the preparation of the Notice that will grant the private initiative the exploration and operation of traditional lotteries in physical environment. The contract provides for a minimum gross collection of R$ 5 billion (US$ 970m) during the 20 years of validity.
This is the second hearing of the event, which received contributions from several players in the market. The next step is the delivery of answers to the questions presented during the hearing and then the International Bidding Notice will be published.
The minutes of the public hearing can be found here (in Portuguese).
Among the main points listed by those present, the highlights were the issue of guarantees, since a fixed amount of R$ 100 million (US$ 19.4m) is being required. Those present asked that it be decreasing according to the performance of the contract.
Another point was the lottery remuneration of 20% over the GGR, considered high by the participants, which could decrease the competitiveness of the new modalities in case of payout changes to ensure attractiveness. The fear of those present is that this could substantially reduce the profitability of the operator.
The requirement of the operation in the 853 municipalities of Minas Gerais was also questioned, which makes logistics impractical. In addition, the use of offline terminals also raised doubts, since Loteria Mineira opted for the format due to a contract in progress, with Intralot do Brasil, to be online. Among the concerns raised is the fact that because it is not online, the new modalities may become obsolete throughout the contract.
Those present praised the importance of holding the hearing and Loteria Mineira's transparent posture when presenting to interested parties the entire process of preparing the international bidding.
The president of the Lottery of Minas Gerais told GMB that he was satisfied by the understanding of those present to the way the process is being conducted. "We had representatives of national and international companies and the highest understanding of the subject. It was very productive and a very rich day of exchanging experiences. The work done will allow our documentary set to become even more robust. It was a privilege for us, the Loteria Mineira, to receive so brilliant and qualified minds to contribute to the process of granting new lottery modalities to the private sector.”
Source: GMB
