The initiative is led by CPP (Companhia Paulista de Parcerias), which is part of the Secretariat for Investment Partnerships. According to the president of the CPP, Edgard Benozatti Neto, this is one of the São Paulo government's priority projects. "We have high expectations," he told Folha.
Public resources raised through betting need to be allocated to combating social vulnerability. In the state of São Paulo, this money will go 100% to the health sector.
A broad study of the project was approved last year and, now, the government believes that all the technical questions raised by the TCE-SP (São Paulo State Audit Court), which prevented the state lottery notice from moving forward in 2022, have been remedied.
"The TCE always has the prerogative to raise questions and raise reservations. But we looked carefully at the previous project and the TCE's decision in relation to it to mitigate any questions," says Bezonatti.
Among the weaknesses highlighted by the court in relation to the first project is the superficiality of the economic-financial feasibility study, which generated doubts related to the scope of services, business model and financial parameters for granting and operation.
The TCE-SP also cited the inadequacy of the technical qualification criteria and the advertising of the tender, considered insufficient.
The government sought to resolve these issues by holding public hearings and market surveys. The lack of technical support was also a concern for the team working on this issue.
"The TCE raised relevant points, so we brought in experts and had good insights from the market," says Bezonatti.
The CPP has not yet released government revenue estimates from the state lottery. In addition to sharing the business with Caixa Econômica Federal, the company that wins the auction will still have to compete for space with illegal games of chance, betting and unregulated competitors.
This makes accurate revenue forecasting difficult. The project's technical note estimates, with data from 2022, that the market in the state generates around R$9.3 billion (US$1.8bn) per year. Of this amount, on average 20% of the market should go to the company that wins the tender in a situation of company maturity (which should be reached in approximately six years, according to the technical note).
But the government believes that, little by little, the company will absorb this market, which has great potential for growth, since, according to Bezonatti, the betting sector in São Paulo is comparable to that of countries like France and England.
After the auction, the São Paulo government will raise an initial amount with a fixed exploration grant and then there will be a variable grant, depending on the revenue raised. Bezonatti reinforces that the idea is to create a sustainable environment for the concessionaire, with a stable long-term policy.
Source: Folha
