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Brazil: Lotesul takes next step with Paraná lottery supplier

Prohards, already active in Paraná’s state lottery, advances to practical testing phase of Mato Grosso do Sul platform tender.

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Key Points
Prohards has been called to complete the proof of concept stage of the Lotesul platform tender
LottoPro was previously disqualified after failing the electronic vault integration requirement
The contract is valued at BR51.4m ($9.7m) and covers validation of all lottery transactions in Mato Grosso do Sul

The Government of Mato Grosso do Sul has summoned Prohards Comércio Ltda to complete the proof of concept (PoC) phase of the Lotesul platform tender. 

This is the third time the process has been opened by the Ministry of Finance.

The practical evaluation is scheduled for March 4 at the state’s Executive Secretariat for Digital Transformation (Setdig) in Campo Grande.

Prohards already operates within the state lottery ecosystem through Lottopar in Paraná and submitted a 36.11% gross revenue sharing offer in the current bidding process. 

The company, founded in 2006, has a registered share capital of BR5m and is linked to the Baungartner family, traditionally active in Brazil’s gaming and lottery sector.

The PoC stage follows the disqualification of São Paulo-based LottoPro, which had initially submitted the highest revenue transfer proposal at 43.36%. 

LottoPro was eliminated after failing to demonstrate the technical capability to integrate with the state’s electronic vault system, a mandatory requirement outlined in the tender documents.

Under the rules, the electronic vault functions as an auditable repository for lottery operations, requiring secure hourly transmission and storage of transaction files generated by licensed operators. 

The platform to be selected will centralize and validate sales, player identification, prize payments, variable concession fees and tax collection.

The overall contract value is estimated at BR51,474,339.31, corresponding to projected operational revenue.

The current process follows previous attempts to secure a technology provider for Lotesul, with the state having reopened the tender after earlier setbacks, as previously reported.

Good to know

The state estimates the lottery could generate up to BR2bn annually

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