MAR 26 DE NOVIEMBRE DE 2024 - 11:28hs.
At least US$ 101m over 20 years

Loteria Mineira signs game concession contract and guarantees more resources for the State

The Minas Gerais State Lottery (LEMG) and the Mineira da Sorte consortium signed the contract for the exploration and operation of instant and conventional lotteries in the state of Minas Gerais. The forecast is that the collection of the modalities will reach R$ 5 billion (US$ 1.01b) over 20 years, with a transfer of R$ 500 million (US$ 101m) to the state in the period. The consortium is made up of IGT, Scientific Games and Saga BGI.

The contract, which lasts for 20 years, provides for a collection of R$ 5 billion (US$ 1.01b), with a minimum transfer target of R$ 500 million (US$ 101m) to the State in the period, which guarantees at least R$ 25 million (US$ 5.05m) per year for investment in social policies of the Government of Minas, which is the allocation of resources from the Loteria Mineira, an autarchy linked to the Secretary of State for Finance.

But the general director of Loteria Mineira, Ronan Moreira, recalls that the transfer can be even greater, since the proposal presented by the consortium was to remunerate the State in 21% of the net revenue from the exploitation of the games.

"We already guarantee in the contract a transfer of at least R$ 500 million. Depending on the collection volume, this amount may be higher. We understand that the conditions of our contract are very good, since other states have worked with percentages of much lower transfers," says the general director.

The contract was won by the Mineira da Sorte consortium, made up of IGT, Scientific Games and Saga BGI for the operation of instant and conventional lotteries in Minas Gerais, including strategic planning services, product creation, printing solutions, storage, implementation and operation of lottery products, marketing, creation and operation of a distribution network, commercialization and payment of prizes.

Now, the next step will be for the concessionaire to present all the technological resources that will be used to be approved by Loteria Mineira technicians, in addition to management information, such as card validation processes and transfer of report information, for example. Subsequently, the issuance of the game plan is authorized.

The expectation is that in the middle of the second semester the company will start selling its lottery products.

The Secretary of State for Finance, Gustavo Barbosa, praises the entire process conducted by Loteria Mineira, which lasted two and a half years from the first public consultations to the conclusion of the bidding process, always providing the participation of interested parties and allowing suggestions for the construction public tender, which attracted national and international companies.

"It is necessary to point out that the Loteria Mineira fulfills its mission, which is to provide the State with resources for application in public policies, especially in the social area. And, most importantly, they are non-tax resources; that is, they do not result from the collection of more taxes," highlights the secretary.

Since 2010, Loteria Mineira has had a concession contract to explore online and real-time games with Intralot. Thanks to this contract, in 2020, Loteria Mineira allocated R$ 33 million (US$ 6.7m) to actions to combat the covid-19 pandemic. In 2021, R$ 12 million (US$ 2.45m) was spent on purchasing vehicles for the Military Police and another R$ 12 million on programs run by the State Secretariat for Social Development (Sedese). In 2022, resources were earmarked for the project to produce disposable diapers by the State Department of Justice and Public Security (Sejusp) and, for 2023, R$ 30 million (US$ 6m) have already been guaranteed for seven projects that will be carried out by Sedese.

"Now we have another contract that guarantees that we will have at least another R$ 500 million (US$ 101m) over the next 20 years. Upon completing 100 years of uninterrupted operations, Loteria Mineira consolidates itself as an important unit for financing social programs managed by the Government of Minas," says Ronan Moreira.

Source: GMB