The Aposta Vencedora Consortium was the winner of the lottery services auction in São Paulo, held in November last year. The auction took place at B3, the São Paulo Stock Exchange, on November 1st.
However, the group did not pay the R$600 million for the concession defined in the bidding process. According to Valor Econômico, the Consortium will be disqualified.
Led by SAV Participações, established in Brasília, the group also includes the participation of Alexandre Manoel Angelo da Silva, who served as Secretary of Planning, Energy and Lottery at the Ministry of Economy between 2019 and 2020.
The tendency is that the second-placed proposal, the SP Loterias Consortium — led by IGT Global Services — will be considered. In other words, this group will be called to take on the contract.
The decision was published in the Official Gazette last Thursday (8). At the time of the auction, the SP Loterias Consortium had presented a proposal of approximately R$526 million for the concession.
“The first-place bidder was unable to meet the requirements of the notice, which provided for 60 days plus 60 days for payment of the concession fee. They asked for it and we gave them an additional 10 business days, which is our standard, and they were unable to do so. So we are declaring that they are unable to take on the contract and we are going to activate the proposal guarantee,” stated the secretary of partnerships and investments for the government of the State of São Paulo, Rafael Benini.
According to Benini, the group that won the auction in November should have deposited an amount of around R$3 million as a guarantee for the bid, corresponding to 1% of the total investment presented in the contract. Since this was not done, “we are taking action to cover the expenses” of the State with the bidding process, as a form of sanction for the group.
State Lottery Contract Details
The contract for the operation has a duration of 15 years and includes a significant investment of R$ 333 million. The group will be responsible for the implementation of 31 physical points of sale, in addition to more than 11 thousand non-exclusive points throughout the state, allowing a certain flexibility in the choice of installation locations.
The contract excludes modalities considered illegal or unregulated. In addition, it restricts the commitment to games defined by contract, respecting federal legislation that prohibits the participation of minors under 18 years of age.
Government projections regarding the São Paulo lottery
Tarcísio de Freitas’ administration expects to raise R$3.4 billion in grants for São Paulo over the next 15 years, all of which will be earmarked for the health sector. As required by federal law, the funds raised must be used to combat social vulnerability.
The concession includes prediction bets (specific, sports, numerical and passive) and instant bets, both in-person and virtual. In prediction bets, the bettor tries to guess the drawn numbers, similar to Caixa games, such as Mega-Sena and Quina.
In sports betting, participants can predict the results of sporting events, such as football. In the instant mode, similar to the scratch card, the participant immediately finds out if they have won a prize.
According to the notice, the concessionaire is responsible for mitigating any risks inherent to the competitions, while the SP Public Services Regulatory Agency (Arsesp) will have the mission of monitoring its activities.