GMB – What is the scope of the project the company hase just won to operate lottery modalities in Tocantins?
Eduardo Paiva – We have just won the operation of lotteries in Tocantins for 20 years through the Consórcio Lototins. The state made a good choice by grouping all lottery modalities into a single lot. In this new scenario post-decision of the STF, no state had granted its public service to just one operator. This is a paradigm shift. Many people were against it, thinking it wouldn't work well. But from the state's point of view, with this concept of national bets, it brings significant competition for them, giving them much more strength to compete with major international players. Commercially, the state will have a stronger operator with enough muscle to thrive in the market. We are very happy to have this opportunity to help the state channel resources back into social projects.
I believe that in the next two or three months, if all administrative procedures and approvals proceed correctly, we will start operations, bringing technology and a lot of know-how and hoping for the best for the people of Tocantins.
What products will Lototins offer?
We will offer a wide range of products. All modalities are covered, and Vibra Gaming, a great partner of ours at Embralote, of which I am the CEO and that has been operating in Paraíba since the middle of last year, has many innovations and novelties. And I'll give you a spoiler. This March 13th, Maranhão is expected to launch its lottery in São Luís. We will be with the state governor attending the ceremony and leading this project, which was born three years ago but went through setbacks. Now, finally, the first ticket will come out. 2024 will be a year of great achievements. Everything we have been preparing is happening, and this latest conquest in Tocantins makes us very happy.
Which states are you focusing on next?
Brazil is big. There are 27 states, and we are carefully analyzing all opportunities. In some cases, we don't really agree with the modeling or that the rate is a little high to channel. To make a lottery viable, it is important to provide conditions for the operator, including financial ones. It cannot be overtaxed, nor can fees be created for payment methods or others. With these actions, it ends up penalizing the operator, who is a partner of the state. It is the holder of the operation and needs to provide conditions for the operations to be economically viable.
We are analyzing all proposals in general that have an attractive condition, and I hope that new jurisdictions will still come out in 2024. Brazil is a new frontier not only nationally but also at the state level. Each state is the size of a European country and has its own reality. There is no one-size-fits-all solution, and not everyone should operate in the same way. Each one must analyze cultural and operational issues according to its peculiarities.
Thinking about the cultural aspect and regional taste, will you operate both online modalities and physical products in all operations?
Certainly. In all states that allow it. At the state level, there is a competitive advantage regarding fixed-odds bets, as many states are taxing more attractively than the Union. While the Union is taxing at 12%, states are taxing at 5% or 6%. In other words, the operator has more margin to offer higher odds to the bettor, who will choose the one that suits them best, whether online or physical. States will also be able to explore online virtual games, so they will have the possibility to offer this vertical even in physical locations. The Union has made it clear that online games, in its regulation, must be only online.
States have discretion to choose the taxation that suits them best, as well as whether the exploitation will be physical or online. The Union pointed out rules, such as territoriality, as well as not creating new modalities. But it is a public service, and the state operates as it wants within the law. There are many advantages in the states and that is what we believe.
Source: Exclusive GMB
