The public hearing of Loteria Mineira this Thursday (26), to present to the market the process of granting instantaneous and conventional lotteries by physical means, generally pleased the operators present.
After the opening of the meeting, the floor was given to those present to point out doubts and first suggestions for the preparation of the Notice to be presented to the market shortly. The slightly more persistent questions concerned technical qualification issues, tie-breaking criteria in the case of proposals of the same value, and ways of transferring them to Loteria Mineira.
Regarding the technical qualification, LEMG had indicated the need for the future operator to prove 150 million tickets or reais sold (US$ 31m) for a period of one year. This requirement, in Brazil, would not make much sense considering that only Loterias CAIXA has such a movement in the country.
Still on the issue of technical qualification, as it is extremely rigid, it could exclude some players from the process, which is why LEMG has undertaken to analyze those that may alienate interested parties with proven capacity but that, due to some detail, may be disqualified.
Another point that caused some discomfort was the tie-breaking criterion in the case of a proposal of the same value, in which a national company would be qualified. Loteria Mineira admitted the possibility of evaluating the issue and opting for a reverse auction in this case.
Some participants commented on the issue of transfer to LEMG, since initially the process foresees that for the R$ 2 billion (US$ 416m) contract, R$ 200 million (US$ 41.6m) will be transferred. They recalled the issue of expenses and payment of prizes, which should be considered.
A review of the guarantees was also requested, since the public notice provides for an increasing percentage according to the progress of the contract. In the opinion of some of those present, it would be more appropriate for the percentage to decrease as the contract progresses, since the longer the operation, the lower the risks, including the fact that the synergy between LEMG and the qualified operator will be increasing.
The physical data center in Brazil was also questioned, as there are cloud options, such as those offered by companies such as Microsoft and Amazon, which are safer and transform the investment into a service, allowing for less cost for the operator at the same time as more safety for the operation.
Loteria Mineira accepted the arguments in a very democratic way and made itself available to analyze in order to meet the demands of the players who are participating in this process of building a well-conducted bidding.
In general, the players' attitude is that the process is being well conducted by Loteria Mineira and will be productive for Minas Gerais and interesting for the operator that wins. All players are having the opportunity to put their vision for the best business model for traditional and instant lotteries for Minas Gerais, which could be a reference model for other states.
Until June 3, interested parties may request further clarifications through the Loteria Mineira website. Depending on the number of queries and degree of complexity, it is estimated that Loteria Mineira will analyze the questions and then present its considerations and prepare the public notice to be placed on the market.
In addition to Ronan Moreira, general director of the Lottery of the State of Minas Gerais and his team, the following individuals and legal entities participated in the public hearing:
Hebara Distr. de Produtos Lotéricos
Amilton Noble
Intralot Brasil
Gustavo Viana Mantovani
International Gaming Technology Brasil - IGT and Scientific Games Brasil
Roberto Quatrini
AM & FPA Com. Equipamentos e Programas de Computador
Adhemar Ranciaro Neto
GLI
Valter Delfraro Jr.
MCE Intermediações e Negócios
Fernando Marcus Fiche
2S Consultoria Empresarial
Edson Massao Kikuchi
SDL Sistema de Distribuição Lotérica
Marcelo Gomes de Araújo e/ou Odilon Dumont Oliveira
NGT Brasil Tecnologia e Atividades Lotéricas
Ricardo de Paula Feijó
Skilrock Technologies Brasil
Ricardo de Paula Feijó
Autopel Automação e Informática
Marco Antônio Gravio
José Renato Vale
Daniella Soares de Miranda
João Rachid da Motta
Marcelo Pacífico Coelho Araújo
Alexandre Rodrigues
Marco Vinicio Martins de Sá
Source: GMB
