Portuguese-led Consortium Wins Concession for São Paulo Lottery Auction
The Consortium Aposta Vencedora, headed by the Portuguese company SAV Participações, emerged as the victorious bidder in the auction for the concession of the São Paulo Lottery. The auction, which took place on Friday, October 1st, at the B3 headquarters in São Paulo, saw the consortium offering a notable R$ 600 million, representing a premium of 130.15% over the minimum bid of R$ 260.7 million.
The government of the State of São Paulo anticipates generating R$ 3.4 billion over a 15-year period through this concession, with the funds earmarked for the healthcare sector. The Portuguese consortium outperformed the Consortium SP Loterias, led by IGT Global Services Limited, an Italian company with experience in operating the state lottery of Minas Gerais.
The bidding process witnessed competitive premiums from the start, with Aposta Vencedora seizing the lead during the verbal bidding phase. The winning company will have the opportunity to operate lotteries both physically and virtually, in addition to offering various modalities such as forecasts and instant lotteries.
The project encompasses the establishment of 31 exclusive units and over 11,000 non-exclusive points for lottery outlets across São Paulo. This auction forms part of São Paulo’s government initiative to attract investments totaling approximately R$ 20 billion by year-end.
The concession for the São Paulo State Lottery includes the implementation of a compliance plan to deter money laundering and other illicit activities. Furthermore, the concessionaire is required to provide protective and assistance programs for individuals vulnerable to gambling and raise awareness about the perils of gambling addiction. The contract also enforces regulations to prevent the sale of products to minors, stipulating a minimum distance of 300 meters from schools.
These insights were gathered from the newspaper “O Estado de S. Paulo.”