The multinational International Game Technology (IGT) remains determined in its operations in the São Paulo market, even after losing the state lottery concession. The company, which has a history in the gambling sector, plans to take the case to court, questioning the technical qualifications of the winning competitor.
An IGT executive said: “I don’t want to get into a nuclear war with the São Paulo government, but I’m tired of waiting.” The statement reflects the company’s dissatisfaction with the conduct of the bidding process.
IGT alleges lack of transparency and responses from the São Paulo government in the lottery auction
IGT’s dissatisfaction increased after sending a letter to the Investment Partnership Secretary, Rafael Benini. The correspondence, which requested the disclosure of the competitor’s technical qualifications, was ignored by the government.
In other words, this silence generated criticism about the lack of transparency in the process. Therefore, for IGT, it is essential that technical criteria are publicly evaluated, ensuring fair competition.
The auction promoted by the São Paulo government featured a winning bid of R$600 million, presented by the Aposta Vencedora consortium, led by the Portuguese SAV Participações.
This consortium will have the exclusive right to explore the state’s lottery services for the next 15 years. The event took place at B3, São Paulo Stock Exchange, on November 1st.
Operations will include predictions, sports betting, and instant bets, such as scratch cards. Furthermore, the contract requires the installation of at least 31 points of sale for the exclusive sale of concession products.
Revenues and economic impacts
The concession is expected to raise R$3.4 billion in grants over 15 years. Thus, the value generated will be allocated to public health, one of the pillars of the state government to justify the project.
The minimum bid stipulated was R$260 million, highlighting the high revenue potential of the lottery sector. However, judicialization by the IGT could delay plans and impact the state’s revenue expectations.
The dispute between IGT and Aposta Vencedora highlights a scenario of tension in the lottery sector. Thus, issues such as competitiveness and transparency in the gaming market remain on the agenda.
