Amilton Noble, CEO of Hebara, a lottery operator with almost 30 years of experience in the Brazilian market, accompanied the panels that dealt with the topic during recent BiS and left the event satisfied with the qualified discussions that took place.
GMB - What were the main news and what was the most interesting thing you saw in the discussions about lotteries in Brazil during recente BiS?
Amilton Noble - The qualified discussions we had with the presidents of Loterj and the Minas do Maranhão lotteries effectively show that the state lottery market in the country is at a very different moment from what we saw in past years. The evolution of this lottery market, especially with the STF decision in ADPFs 492 and 493, clearly show that it is an extremely promising market and that in the coming years we will certainly have state lotteries in all twenty-six states and in the Federal District.
And Brazil, unfortunately, is very poor in terms of lottery innovation. Are changes coming?
Have no doubt. The revolution is here to stay. Today there is no talk of future lottery projects with traditional products. We had a lot of experience for several years operating physical lottery products due to legal restrictions. Legal uncertainty was very strong and contractual deadlines were very short. So, effectively, we didn't have the capacity to do a long-term planning, a 15, 20-year market analysis, to recover heavy investments. This key has already turned, the Supreme Court decision has taken place, all the initiatives we see address the possibility of product modernization. With that, we will certainly have another lottery scenario from now on.
It was to be expected that the first state lotteries would begin to operate. What is missing?
I think we've had legal restrictions for many years. There has already been a decision by the Supreme Court and, making a mea culpa, I think that neither the companies nor the granting entities were prepared for this moment. We had some negative experiences, public notices that theoretically do not reflect the good practices of the national and international market. And this, obviously, reflects on the length of the process. But, I am optimistic. I think things will pick up soon.
We will have one state after another implementing their lotteries, with healthy disputes between national and international companies and that is what we fight for. We fight for a transparent, fair, solid market in which the best bidders win, implement state lotteries and bring a good level of revenue generation to all state governments.
And what about sports betting for state lotteries since we still don't have the regulation? How will they handle this issue?
In my opinion, this is a sin that state lotteries are committing because, obviously, when there is federal regulation, the big players that can fit in the legislation will give priority to having their national operations. Medium-sized players that cannot effectively, for financial or other reasons, have their national operation, will have state lotteries as a way to maintain their activity. So it is wholesome; a complementary action. But, if the states, and especially the larger ones, had taken the lead, they would certainly have also attracted major players to this state market with the fear that it would eventually delay federal regulation too much. So, I think the big gain for the states would be to get ahead of federal regulation regarding sports
Since they didn't come out, are we going to have two sports betting sectors: the big bets and the little bets?
This already exists today. It does not change the current market scenario. But the fact is this: in this absolutely gigantic market, the level of local competition with the national one is also healthy. The search for a state gambler for a national company will require much more effort because the local knows much more about the reality of the state, knows more about the local media condition, has ways of doing ‘guerrilla marketing’. So I think there's room for everyone. Just be well regulated, generating employment, income and resources to be used in noble causes. It's a gigantic lottery market; It can't be that restrictive, but it has to be organized.
And as a major lottery operator in Brazil, what is Hebara's news for the country?
Hebara has specialized over the last thirty years in operating state lottery. Lately, we had the Loterj operation (Rio de Janeiro), but in the early days we were also in Rio Grande do Sul, Minas Gerais, Mato Grosso, Paraná and other states. So, with the legal certainty that the STF decision brought, we have already listed a range of states where we will participate in the bidding processes.
We are already contributing to public hearings and consultations with the experience we have acquired over time, mainly as a result of being a local operator. I think this brings a gain to the activity because it is someone who has already done something similar in Brazil; this really matters a lot. Certainly, we will participate in all major bids directly or indirectly.
Source: Exclusive GMB
