MAR 26 DE NOVIEMBRE DE 2024 - 19:22hs.
Electronic auction on March 10

Paraná state resumes bidding for lottery and sports betting platform

The government of Brazil’s state of Paraná republished the Electronic Auction Notice 2306/2022, which aims to hire a company to provide the platform for lottery activities already integrated with means of payment. It must be capable of managing, regulating and controlling the activities and financial flow of Lotepar's lottery operators. Total revenue is estimated on BRL 232 million (US$ 45m) per year from sports betting and the contract for the platform is valued at BRL 8.35 million (US$ 1.6m).

The Lottery of the State of Paraná (Lotepar) has re-launched the public notice for electronic trading 2306/200, which had been suspended for revision of the document that will guide the bidding process. The purpose of the bidding is to hire a company specialized in providing a platform to control lottery activities, integrated with means of payment, to manage and control the activities and financial flow of the lottery operators of the Lotepar.

Lotepar estimates total revenue from sports betting by lottery operators at around BRL 232 million (US$ 45m) and the price for hiring the platform was set at BRL 8.35 million (US$ 1.6m).

This amount represents the sum of 3% on deposits made by customers on the platform with 1% on withdrawals. The responsibility for paying the R$ 8.35 million (US$ 1.6m) to the platform supplier will be borne by Lotepar's lottery operators, which makes it clear in the public notice that it will not bear any cost for the implementation of the platform.
 


In addition, Lotepar will be responsible for transferring a minimum of 6.67% of the activity's gross revenue percentage. This amount will be paid by the winning company in the trading session and the price criterion takes into account the highest percentage transferred to Lotepar.

The Notice provides for the supply of a platform for the control of companies that will operate the lottery modalities authorized by Lotepar and the contract will be in a single lot from the supply of the system.

APIs and hardware

The system must include APIs that will be used to offer products, financial services and payments to customers indicated by the Contracting Party, that is, for the integration of lottery operators.

The Contractor shall provide hardware at the physical points of sale necessary to carry out the services described in the Term of Reference and establish integration of the systems of different operators authorized by Lotepar.

The company that wins the auction must carry out integration with the game sales websites of operators authorized by Lotepar, where purchases made by customers of operators through their payment system are directed to the respective commercial sites after purchasing tickets and other game products provided by operators.

The platform must have defined processes for identifying suspicious operations and be prepared to provide information and consult with the competent bodies.

The system should provide forms of customer identification, including full name, CPF, proof of residence and user validation by facial biometrics optionally, among other requirements set forth in the Public Notice.

Responsible Gaming

The new announcement also stipulates the parameterization of responsible gaming rules, which will be defined by the Contracting Party, following the best international practices, including the establishment of limits by users and other types of operation blocking mechanisms, player self-exclusion system, registration of complaints, ombudsman for complaints, list of authorized events and control of deposit limits.

The company that wins the auction must have the platform available for integration within 30 days after signing the supply contract.

The platform's primary data center must be installed within the territorial limits of Brazil, while the secondary data center must be in Curitiba/PR, in a location to be defined by Lotepar.
 


Hiring justification

In the announcement, Lotepar indicates that “it aims to generate resources and allocate them to actions and services related to Public Security and Popular Housing, financing of actions and programs of the State Government that deal with the realization of other social rights and resources for maintenance of its core activity, through the exploitation of lottery games in the State, including electronic games by physical and digital means, observing the lottery modalities provided for in federal legislation 13756, of 2018, state legislation 20945, of 2021 and under the terms of Decree no. 10,843/2022, which regulates the Paraná State Lottery.

Based on the projection of revenue from studies in regulated markets, it is estimated that the lottery market in the State of Paraná, considering the Fixed Quota Sports Betting modalities, has a total estimated revenue potential of R$ 232,000,000.00 ( two hundred and thirty-two million reais - US$ 45m) per year.”

The exploration of the various lottery modalities will be carried out by the private initiative, preceded by a public contracting process, which is in the phase of internal studies by Lotepar. However, before delegating the exploitation of the public lottery service, Lotepar considers it necessary and essential to hire a company to develop a management platform, regulation of activities and payments for lottery services operated by private operators, in order to provide greater control and allow effective and full supervision of activities, in the case of a new developing market in Brazil, however, explored in a mature way in other countries, it is necessary to take actions that inhibit and prevent misconduct by users and operators of this market, thus ensuring not only the quality of the services provided but also their safety and perpetuity.

The contracted company must provide a platform for the management, regulation and payment of lottery services for immediate use by the State of Paraná, throughout the contractual term, the contracted party must update the platform and meet the determinations of customizations for the State of Paraná, whose source code and information specific to the platform will be delivered to the State at the end of the contract, so that the management, regulation and payment system will belong to the State definitively and without restrictions. This development phase will last the entire duration of the contract, always aiming at the evolution and continuous improvement of the systems. The contracted company must also provide the continuous operation services of the management platform together with the means of payment.”

About electronic auction

Acceptance of proposals: until 9 am (Brasília time) on 03/10/2023

Opening of the bidding phase: 10 am (Brasília time) on 03/10/2023

The electronic auction will be held at www.comprasgovernamentais.gov.br, the same address where interested parties must submit proposals. The notice is available on the internet, on the pages of the National Public Procurement Portal https://pncp.gov.br , www.comprasparana.pr.gov.br and www.gov.br/compras .

Doubts will be clarified exclusively electronically within a maximum of three days before the trading session, directly on the portal www.comprasparana.pr.gov.br .

Source: GMB