The amount was revised by determination of the TEC itself after realizing the potential for losses to the coffers of São Paulo if the Social Lottery – as it is known – was granted by the initial value.
After the court's decision, the Secretariat of Budget and Management of São Paulo then contracted a study by Fipe (Economic Research Institute Foundation). The result indicated that the minimum value of the grant should be R$ 906.3 million (US$ 172m) – almost three times the initial figure (R$ 313.5 million – US$ 59.5m). The contract will be twenty years.
The auction had already been suspended in March this year. A representation made to the TCE-SP (Court of Auditors of the State of São Paulo) by the companies Hebara Distribuidora de Produtos Lotéricos, Madrona Advogados, IGT and Scientific Games against the competition notice alleged lack of wide disclosure, including international, short term, modeling failures, among other justifications.
After the reformulation of the notice, a new auction was scheduled for December 1, but two of the companies appealed again. Behind the scenes, the assessment of members of the court is that companies are only interested in barring competition.
Source: GMB
