The President of the Brazilian Federation of Lottery Companies (Febralot), Jodismar, has requested the Vice President of Caixa, Paulo Ângelo, to cancel the tender process for new lotteries in seven Brazilian states.
The federation explained that, although lotteries are considered essential, the economic and health crises have left the industry in a critical situation. As a result, they also urged the strengthening of the online sector to maintain sales.
Last week, Caixa announced that people or companies interested in operating federal lotteries will be able to submit their proposals until July 21. The tender process is scheduled to take place in seven Brazilian states: Acre, Goiás, Pará, Pernambuco, Paraná, Rondonia and São Paulo.
“[At Caixa], we can raise $5.5bn, $7.5bn or $9.5bn in an initial public offering (IPO),” said Economy Minister Paulo Guedes.
Febralot said: “The lottery network is very weak and new competitors in the system will further damage the current situation. At this point, digital services should be allowed to work with the network and Caixa to guarantee the inclusion of lotteries in all kinds of services.”
The federation also urged Caixa to prioritize “the need to integrate a working group to review the percentage directed at Casa Lotérica and adapt it to the present and future”.
It added: “They must find a solution for the online gambling commission, since the contribution to Casa Lotérica has been set at 5%. But now, with the pandemic, this has increased substantially as agencies are closed.”
Jodismar said that a proposal was sent to Caixa to readjust the rates for banking services. The report, according to the vice president, is almost ready, verified and works on “a methodology where profits not only increase with income, but also because expenses are lower.”