Federal Government issues authorization for the LOTEX

September 6th, 2017

On September 1st, The Special Secretariat for the Program of Partnerships in Investments issued its Resolution # 16, which has authorized the concession of the services of the LOTEX, the federal instantaneous lottery.

The Resolution states that the concession of LOTEX will be under the regime of regular concession of services, for the period of 25 years. The bidding procedure will obey the auction procedure, with inverted sequence. The judgement criterion will be the higher financial offer for the fixed allowance, to be paid upfront as a condition precedent for the concession agreement.

According to the Resolution, bidding companies will be required to demonstrate previous experience in the operation of instantaneous lottery and monthly gross revenue, from the sale of physical tickets or online bets, equal or major to BRL 100 million. Alternatively, it shall be demonstrated the participation in an enterprise whose total investment be equal or superior to BRL 175 million.

The interested companies shall participate individually or in consortiums. In the late case, the company that holds the experience in operating instantaneous lottery services shall hold at least 15% of the SPE that shall be incorporated for the rendering of the services under concession.
Also according to the Resolution, the public consultation shall occur in the next 30 days, with the publication of the bidding rules in October and the auction procedure to occur in mid-December this year.

Please feel free to contact us should you need further clarification.

Castro, Barros, Sobral, Gomes Advogados