Brazil: TCE-SP Halts Concession of São Paulo State Lottery

Brazil.– September 23, 2025 – www.zonadeazar.com  The São Paulo State Court of Accounts (TCE-SP) has suspended the concession process of the Loteria Paulista, citing irregularities in the bidding model and flaws in the financial studies presented.

Overview

The TCE-SP’s decision marks a significant setback for the São Paulo state government, which had sought to grant the lottery concession as a means to generate additional revenue. The watchdog found that the proposed model failed to ensure transparency and competitiveness.

Details And Context

  • Reasons for suspension: The court identified inconsistencies in the feasibility studies, particularly in revenue projections and in the criteria for selecting the concessionaire. It also flagged weaknesses in monitoring clauses and in the economic evaluation methodology.

  • Financial impact: The state government had projected approximately R$ 500 million annually in revenue from the concession. These funds were earmarked for social programs and for bolstering health and education budgets.

  • Government response: Officials expressed surprise at the suspension and pledged to review the issues raised. They also announced plans to engage with TCE-SP to amend the project and relaunch the tender as soon as possible.

Political Repercussions

In the Legislative Assembly, opposition lawmakers welcomed the suspension as a win for oversight, while government allies defended the importance of the concession but admitted the need for adjustments to strengthen its legitimacy.

Private Sector Reaction

Companies interested in the tender voiced concerns about legal uncertainty and delays. Both domestic and international operators had prepared to compete in what was considered a highly strategic concession given the scale of São Paulo’s market.

Future Outlook

While the suspension halts immediate plans, it does not close the door on the Loteria Paulista. The government is expected to redesign the concession framework, ensuring clearer rules, stronger technical backing, and enhanced transparency.

Other states considering their own lottery concessions will closely monitor this case, which may set a precedent for best practices in structuring public lotteries.

Zona de Azar will continue following developments as this critical process unfolds in Brazil’s largest state.

 Editó: @_fonta www.zonadeazar.com

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