The São Paulo government, led by Tarcísio de Freitas (Republicans), is moving forward with a new state lottery project. After a previous unsuccessful attempt to grant lottery services in 2021, it is now determined to implement this plan.
The Privatization Program Board of Directors (CDPED) will evaluate a technical note on the project this Thursday (23). After this stage, the bidding notice will be published by the beginning of June, with the auction scheduled for September.
Companhia Paulista de Parcerias (CPP), linked to the Secretariat of Investment Partnerships, leads the initiative. CPP’s CEO, Edgard Benozatti Neto, highlights the priority of this project for the São Paulo government.
Proceeds from the São Paulo lottery will be allocated to health
The resources from the bets will be directed entirely to the health sector, aiming to combat social vulnerability. After a comprehensive study, the government believes it has overcome the technical questions raised by the São Paulo State Court of Auditors (TCE-SP), which prevented the project from moving forward in 2022.
Among the weaknesses that the TCE-SP pointed out are the superficiality of the economic-financial forecasts and the inadequacy of the technical qualification criteria and publicity for the bid. In this way, the government responded to these issues by holding public hearings and market consultations.
Precise revenue estimates have not yet been released, considering competition with other games and sports betting. However, the government believes in the growth potential of the market in São Paulo.
After the auction, the government will raise an initial amount with a fixed exploration grant and later a variable grant, depending on the revenue raised. The aim is to create a long-term sustainable environment for the delivery of services.
According to Benozatti, São Paulo is exploring an innovative model for state lotteries, incorporating experience in concessions and Public-Private Partnerships (PPPs). This includes performance indicators, monitoring by a regulatory agency and international certifications to ensure the seriousness of operations.
Furthermore, the state will act where necessary, such as in the fight against gambling, but will provide freedom for the company to explore the activity. In this way, the government is determined to make the state lottery a reality in São Paulo.
