The Government of the State of São Paulo has signed a new lottery concession contract that could generate up to BR4bn in public revenue over 15 years.
Under the agreement with SP Loterias, the state will immediately receive BR560m in fixed concession fees.
The newly signed concession places SP Loterias under the operational structure of SP Loterias SPE S.A., a joint venture formed by Scientific Games and Brightstar Global Solutions.
According to the administration, these funds will be allocated to the construction of two state hospitals, located in the countryside of the state.
In addition to the upfront payment, the concession is expected to generate approximately BR3.4bn in variable fees throughout the contract's duration.
The concession allows the operator to run lottery products through both physical and digital channels. The initial rollout includes 31 exclusive lottery units and up to 11,000 authorized points of sale across the state.
Approved products include numerical lotteries, passive lotteries, sports-based lotteries and instant games such as scratchcards.
The contract also includes safeguards aimed at protecting children and adolescents.
Lottery sales points must be located at least 300 meters from schools and daycare centres, and access by minors to lottery products is prohibited.
The concession follows the disqualification of the Aposta Vencedora consortium, which had won the auction held in November last year but failed to pay the required BR600m concession fee within the established deadline.
As a result, the São Paulo government formally removed the group from the process and called SP Loterias, the second-ranked bidder, to proceed with contract execution.
The consortium was granted a 60-day period to complete the formalities and sign the agreement, which has now been finalized.
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