Brasil: São Paulo Government Formalises Lottery Concession with SP Loterias Consortium
Brazil.– January 7, 2026 – www.zonadeazar.com The São Paulo state government has formalised the concession of its state lottery services through the signing of a contract with the SP Loterias Consortium—marking a significant development in the management of public lottery operations and reinforcing regulated investment in Brazil’s gaming market.
Overview
After the originally winning bidder failed to meet the fixed grant payment requirements, the São Paulo state government called in the second-place bidder, SP Loterias, to fulfil the terms of the 2024 lottery concession auction. The contract was officially published in the government’s Diário Oficial on 5 January 2026, signalling the commencement of concession operations under a structured public-private partnership.
The concession is designed to ensure predictable revenue streams for the state while aligning the management of lottery services with principles of efficiency and transparency expected in modern public contracting frameworks.
Details / Context
SP Loterias assumed the concession after the previously selected consortium was disqualified for not paying the required fixed grant, a mandatory condition outlined in the concession tender.
Under the new contract, the state is expected to receive R$ 560 million in fixed grant funds, which will be allocated to the construction of two state hospitals—an example of how lottery revenues are being linked to public health infrastructure investments.
This concession framework forms part of São Paulo’s broader Investment Partnerships Programme (PPI), intended to modernise the delivery of public services through long-term private sector participation and clear performance expectations.
Specific subtopics
Regulatory compliance
The concession operates within a defined regulatory environment that imposes technical, financial and governance standards, enhancing institutional oversight and compliance within the state’s lottery sector.
Sector implications
While the concession focuses on authorised lottery services and excludes unauthorised gaming activities under federal law, it enhances Brazil’s position as an organised and predictable market for regulated gaming investments.
Social investment
Directing lottery concession revenues to priority health projects underscores a social impact approach that aligns economic activity with public policy objectives—an increasingly visible trend in contemporary public concession models.
Future outlook
The formalisation of the concession initiates a new operational phase for São Paulo’s state lottery with enhanced legal certainty and defined financial goals. The effectiveness of the concession’s implementation and achievement of measurable outcomes will be central to assessing the model’s replication potential across other Brazilian states, potentially strengthening the regulated gaming ecosystem nationally. 🔗
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