The European consortium won the concession in a fierce competition, with an offer of R$600 million (US$ 102m), corresponding to 130.15% above the minimum bid established, of R$260.7 million (US$ 44.5m).
The group defeated the Consórcio SP Loterias, led by IGT Global Services Limited, an Italian group with shares traded on the New York Stock Exchange, which already operates the Minas Gerais state lottery.
The lottery is expected to generate R$3.4 billion (US$ 580m) in revenue for the state government over the next 15 years. According to the state's Secretary of Partnerships and Investments, Rafael Benini, the government will receive 35% of the gross operating revenue over the course of the concession. The money raised will necessarily be used for public health.
The state governor, Tarcísio de Freitas, stated that the entire amount of the concession will go to two hospitals in the interior of the state. “In addition to the fixed grant, we become partners in the business and start to earn part of the revenue. The more you [winners] perform, the more the state earns. And the forecast is a profit of R$3.4 billion over the term of the contract,” commented Tarcísio.
The bidding process has already begun with high premiums. The first bid from Consórcio SP Loterias was 86.63% higher than the minimum bid stipulated by the government. Aposta Vencedora, which was later crowned the winner, came in behind, with a premium of 78.36%, but managed to reverse the bid during the open outcry bidding process - a modality in which bids are made verbally.
The project establishes 31 exclusive units and more than 11 thousand non-exclusive points for lottery shops throughout the state of São Paulo.
Control mechanisms
The concession of the SP State Lottery requires the development of a compliance plan to prevent money laundering and other misconduct in betting. It also foresees control mechanisms. Among them, a form of self-exclusion for users.
"This means that if a person informs the website that they do not want to play for 30 days, the portal will be blocked for the profile during that period," explains the president of Companhia Paulista de Parcerias (CPP), Edgard Benozatti Neto.
Rights of the winning consortium and addiction
Aposta Vencedora may operate the service in physical or virtual form. The company will not be obliged to offer all types of games because it will have to assume the responsibilities and risks of the business, according to the parameters of the contract.
Two types of games were defined: instant games and prediction games. In instant bets, the bettor knows the result immediately, like scratch cards, when the bettor simply checks the predetermined result.
The prediction modality is divided into four systems: specific, numerical, sports and passive. In the specific and numerical system, the bettor chooses and hopes to match the largest number of drawn numbers, like in Mega-Sena.
The sports modality is made in relation to bets on football matches, like the famous “pools”. Since the prize is distributed among the winners, the amount received will be higher if the bettor chooses a result with fewer entries.
The so-called ‘Bets’ are not included in the package. The same goes for unregulated or prohibited modalities by law, such as casinos and bingo.
Rules and obligations
The concessionaire must follow the rules of gambling laws, such as preventing minors from gambling, keeping physical sales at least 300 meters away from schools, and also creating advertising materials about the risk of gambling addiction. The supervision will be carried out by Arsesp (São Paulo Public Services Regulatory Agency).
The contract also provides that the company prevents children and adolescents from purchasing products and presents protection and assistance programs for people vulnerable to gambling and their families. Physical points of sale must be at least 300 meters away from daycare centers or elementary and primary education units.
The concession was only possible because the STF revoked the law that allowed only the federal government to explore this type of gambling. In 2020, the Supreme Court ruled that states could have their own lotteries. In São Paulo, the system was approved in 2022 by the Legislative Assembly.
The event is part of the "marathon" of auctions held by the São Paulo government until the end of the year, which is expected to attract investments of around R$20 billion (US$ 3.4bn). The first batch of schools (on Tuesday) and the Rota Sorocabana (on Wednesday) have already been awarded. The bidding for the Nova Raposo highway concession, on November 28, will close the agenda.
Source: GMB
