This preliminary draft aims to enable a future international public bidding process, of the highest bid type, for the contracting of a company that will carry out operational activities related to the exploration and operation of Online/Real Time Lottery games (iLottery). This includes electronic games in physical locations (land-based) and digital/virtual (cyber space), in accordance with the lottery forecast games provided for in federal and state legislation.
The service concession will encompass strategic planning, the creation of lottery games, the implementation and operation of lottery products, marketing, the creation and operation of a point-of-sale network, game sales, the development and implementation of websites, virtual gaming platforms, and prize payouts. This will be carried out in accordance with Federal Law No. 8,987/95.
Various representatives and authorities participated in the session in person, including the General Director of LEMG, Ronan Edgard dos Santos Moreira; the Director of Planning, Management, and Finance, Cyntia Botelho Valle; and the State Prosecutor, Robstaine do Nascimento Costa. The Sectional Controller, Dóris Aparecida Autran, was also present, along with the Organizing Committee of the event.
The following individuals and accredited entities were also present:
The session's President, Antônio Celso Alves Pereira Filho, initiated the Public Consultation proceedings by presenting the structure of Loteria Mineira, the new operational management model, the strategic guidelines of the Government of Minas Gerais, the scope of the service to be contracted, the new regulatory framework, and the optimization of the business model through concessions.
He informed about the deadline for contributions from interested parties, which is until October 20th, 2023. Alves Pereira Filho discussed the stages of the bidding process, its dynamics, and mentioned that the Loteria would have the new operator installed in approximately 12 months.
In response to a question about the territoriality of bets, he explained that they must be placed within the territory of Minas Gerais. He also elaborated on the international competition, the highest bid type, the opening, the proposal classification, and the criteria for inclusion in the bid. LEMG aims to ensure the complete, immediate, and future success of the public/private enterprise of lottery games.
There was a question about the transition of the contract, in the sense that there will be continuity for the games currently being operated. In response, it was explained that there will be a prior operational transition, agreed upon by the parties involved, before the switch is turned, meaning the termination of the current contract. There will indeed be continuity in performance and its future expansion.
During the session, analytical perspectives for defining the scope of the business for the new i-Lottery concession were presented. Furthermore, the pillars of the business model to be contracted were discussed, including sales projections for the object to be contracted. The importance of considering the population density in the State of Minas to serve all regions was emphasized.
The consultation also addressed issues related to the timeframe for the future concessionaire to transfer funds to LEMG/State of Minas, including details about the advance payment of the present value to be spread out in equal annual installments for the settlement of absolute transfers due during the contractual term. The transfer period will be counted as Year 1, starting from May in 2025.
Financial performance was also explained, based on minimum annual gross revenue and transfers to the grantor, to be included in the material used during the Public Consultation session, containing additional information from the Business Draft, which will be released on the LEMG website starting on October 10, 2023.
Participants in the consultation shared important suggestions and contributions that will be considered in the development of the Business Draft.
This is a crucial moment for LEMG, and the public consultation reflects the government's commitment to promoting the growth and modernization of lottery activities in Minas Gerais. The new i-Lottery concession promises significant improvements and a promising future for the gaming sector in the state.
Interested parties should stay tuned for updates that will be posted on the LEMG website from October 10, 2023, when additional information about the Business Draft will be available for review.
The Loteria do Estado de Minas Gerais thanked all those involved and reaffirms its commitment to progress and transparency in all aspects of its lottery operations.
Source: GMB
