Already in operation, Raspadinha® de Minas Gerais had an investment of US$ 6.1m

The concession contract, signed in June of this year, aims to carry out operational activities related to the exploration and operation of instant and conventional lottery games through the concession of public service, exclusively within the territorial scope of the State of Minas Gerais.

The project also includes services such as strategic planning, product creation, printing solution, stocking, implementation and operation of lottery products, marketing, creation and operation of a distribution network, commercialization, and prize payment, based on Federal Law No. 8,987/95.

With the main goal of generating resources and allocating them to promote social well-being, Loteria Mineira, through its alliance with CMSL, aims to offer a wide and varied range of games to bettors in Minas Gerais. The focus is on horizontal distribution and logistics, making the product available at a greater number of points of sale in the state.

With a fun and vibrant visual, the new Raspadinha® games feature the attractiveness of winning various prize amounts instantly. The chance of winning is also higher statistically, with 25% of printed tickets being awarded. In other words, the overall odds are 100,000 prizes in 400,000 tickets.

The product, which entered the Minas Gerais market in October, had marketing investments of around R$ 30 million (US$ 6.1m). The operations, starting with Raspadinha®, will be expanded with traditional lottery games in the next year.

"We launched a portfolio with four Raspadinha® tickets. With prizes up to R$ 250,000, the initial batch alone foresees a distribution of R$ 132 million. Our goal is to be in more than three thousand points of sale in the first six months of operation," says CMSL CEO, Roberto Quattrini.

Among the available ticket options, players can choose according to their color preferences, themes, prizes, and even the cost, as Raspadinha® can be purchased for R$ 2.00, R$ 5.00, or R$ 10.00. If awarded, the buyer can receive the prize instantly, upon validation of the card.

The production of Raspadinha® games, taking place in locations such as Florida, USA, and Santiago, Chile, adheres to industry safety standards and holds certifications such as ISO 9001:2015 Certified Quality Management System, ISO 27001:2013 Certified Information Security System, ISO 14001:2015 Certified Environmental Management System, and the World Lottery Association's (WLA) Security Control Standard (SCS): 2016 Certification for Lottery Information Security.

Subject to rigorous regulation, the manufacturing process involves 16 layers of printing with almost 20 different tests, including washing cycles, exposure to weather and heat, among other procedures, making the process restricted to companies with specific technology and equipment.

Social responsibility and support for the Minas Gerais market

Every Raspadinha® package sold covers its conception, production, programming costs, and generates prizes for players. The product also generates additional revenue and profit for the retail dealer and contributes to social causes and public safety defined by the government.

Of the total net revenue, 21% must be directed to the government, with an expected collection of R$ 5 billion (US$ 1.01bn), and a minimum transfer of R$ 500 million (US$ 101m) over the 20-year concession period, as agreed in the contract.

According to the director-general of Loteria Mineira (LEMG), Ronan Moreira, the primary mission of the institution is the development of the social well-being of the people of Minas Gerais. "Since its creation, Loteria Mineira has been an instrument for generating jobs, income, and economic circulation for the State, enabling the opening of schools, daycare centers, hospitals, as well as sanitation and urbanization projects. This is literally the primary reason for the existence of our autarchy," he says.

In the current management of Loteria, over R$ 80 million (US$ 16.25m) has been allocated to finance social programs executed by the Government of Minas. Some examples of the distribution of these resources include R$ 33 million (US$ 6.7m) to the State Health Fund, R$ 1.79 million (US$ 363k) to the Secretariat of Human Rights, Social Participation, and Citizenship, and R$ 11.25 million (US$ 2.3m) to the Caring Network Program/State Secretariat of Social Development.

In addition to its social role, the operation of Raspadinha® contributes to the economic development of commerce in the state. With no initial cost for retailers, the product can increase the weekly/annual profit revenue for merchants with a 9% commission for selling each Raspadinha®. The goal is to have visibility at the point of sale and leverage the positive feedback from a winning customer who may invest in more products at the same location.

CSML – Consórcio Mineira da Sorte Loteria

The result of a consortium between the two main global lottery providers, IGT and Scientific Games, with more than 35 years of experience and structure to operate lottery systems in more than 100 countries, CMSL also counts on the expertise of the national company Intralot, from SAGA BGI.

“We are a group with extensive experience in the Brazilian lottery sector and have prepared significant investments in marketing. Furthermore, we count on the knowledge of leading companies in the global market,” says Quattrini.

IGT is a leading multinational lottery systems company and provides products and services to 37 of the 45 state lotteries in the US and more than 20 national lotteries. With around 10,500 employees worldwide, its operations are carried out in more than 100 countries.

Scientific Games is a global market leader in digital technology, government-linked lottery products and services, as well as sports betting programs around the world. Founded in 1973, it has more than 3,900 employees who work in 50 countries and 6 continents, serving around 130 customers.

Scientific Games, with revenues of more than US$1 billion, is a company of the Brookfield Business Partners Group and leads the global segment in asset management. Brookfield is made up of a team of experts in investments and professionals in commercial operations, the company has global reach and oversees more than US$650 billion in investment management in 30 countries.

CSML's national representative, Intralot S.A. of the Brazilian SAGA BGI, currently has around 1,800 employees worldwide. The company has already distributed more than R$1 billion in prizes in Brazil alone.

The segment continues to expand in other markets around the world. In Italy, IGT and SG relaunched the national instant ticket lottery in 2004 and increased sales from approximately US$400 million to more than US$11 billion. In New Jersey (USA), IGT and SG have jointly managed the lottery since 2013 and have seen an increase in annual sales by 20% since the beginning of the contract.

Source: GMB