Zona de Azar Brasil – Brazil: São Paulo Advances with New State Lottery Project

Brazil.- May 27, 2024 www.zonadeazar.com  The state administration of São Paulo, under the management of Tarcísio de Freitas of the Republican party, is progressing with the implementation of an unprecedented lottery project for the state. Following an unsuccessful effort in 2021 to privatize lottery services, the government is now committed to realizing this idea.

The project will be submitted for technical analysis by the Privatization Program Board of Directors (CDPED) this Thursday, the 23rd. Once this phase is completed, the announcement of the bidding process is expected to be made by the beginning of June, with the auction scheduled to take place in September.

The initiative is being led by Companhia Paulista de Parcerias (CPP), which is linked to the Secretariat of Investment Partnerships. Edgard Benozatti Neto, who is the CEO of CPP, emphasizes that this project is one of the priorities for the government of the state of São Paulo.

The proceeds obtained from the bets will be fully allocated to the health sector to address social vulnerability. The government, after detailed analysis, believes it has resolved the technical concerns of the São Paulo State Court of Auditors (TCE-SP), which had blocked the project’s progress in the previous year.

The TCE-SP had identified problems such as the lack of depth in financial projections and flaws in the technical qualification criteria and in the publicity of the bidding process. In response, the government held public hearings and sought market feedback.

Exact revenue estimates have not yet been published, taking into account competition with other forms of gaming and sports betting. However, the government is optimistic about the development of the betting sector in São Paulo.

São Paulo is close to creating a state lottery

With the conclusion of the auction, the government hopes to raise an initial amount through the fixed concession and, later, a variable concession based on the revenue obtained. The plan is to establish a lasting system for delivering services.

According to Benozatti, São Paulo is adopting an innovative approach to state lotteries, drawing on its experience in concessions and Public-Private Partnerships (PPPs). The model includes performance metrics, supervision by a regulatory entity and international certifications, ensuring the integrity of operations.

The state will intervene when necessary, for example, to combat gaming addiction, but will give the responsible company autonomy to manage the activity. Therefore, the government is committed to implementing the state lottery in São Paulo.

Edit @_fonta   www.zonadeazar.com