Published: May 26, 2024

Brazil: São Paulo state lottery bidding project should be launched in June

Government estimates that the gambling market generates more than R$9 billion per year in the state.

São Paulo.- The government of the state of São Paulo , through Companhia Paulista de Parcerias (CPP) , which is part of the Secretariat for Partnerships in Investments , is planning to launch a new bidding project for the operation of the state lottery. The government estimates that the gambling market, including lottery games, generates more than R$9.3 billion per year in the state.

According to what the Folha de S. Paulo newspaper found, the bidding notice should be published in June and the auction should take place in September. The president of the CPP, Edgard Benozatti Neto , told Folha that this project is one of the priorities of the Tarcísio de Freitas (Republicanos-SP) government . “We have high expectations,” said Edgard.

The lottery project was created in 2021, but due to technical questions raised by the São Paulo State Court of Auditors (TCE-SP) , the proposal did not move forward. Now the government, according to Folha, believes that it has already resolved all pending issues and that it will be possible to launch the notice next month.

“The TCE always has the prerogative to ask questions and enter with reservations. But we looked carefully at the previous project and the TCE's decision in relation to it to mitigate any questions . The TCE raised relevant points, so we brought in experts and had good insights into the market”, declared Bezonatti to the newspaper.

Among the problems identified by the state Court of Auditors was the superficiality of the economic-financial feasibility study of the first project. The court questioned the business model and financial parameters for granting and operation. The institution also considered the insufficiency of the technical qualification criteria for the bid.

According to the new project, the resources generated for the government by the lottery must be allocated 100% to the health sector . The São Paulo executive branch does not yet have an exact estimate of how much it can collect, but believes that the state lottery should hold 20% of São Paulo's gambling market , with the potential to grow more than that.

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