for early access to the latest igaming videos!
and get the latest igaming news first!
LottoPro Jogos de Apostas e Gestão de Lotéricas Ltda., headquartered in São Paulo, placed the best offer in the public tender to manage the Lotesul platform with an offer to transfer 43.36% of the gross revenue to the state government. The electronic auction was held last Friday (23) and selected a company to implement and manage the technological platform, which controls the lottery activities that the state operates. The estimated value of the contract is R$ 51.4 million over its full term.
Under the proposed model, for every R$100 million that the operation of the lottery yields, the state will take R$43.36 million, hence one of the most important shares of revenues seen in concessions of this type.
Rapid Escalation During the Open Bidding Phase
The auction actually started at 8:00 a.m., with the first bid placed at 8:04 a.m. The first bid was already at 15.80%, above the minimum established in the tender notice of 14.33%. A minute later, it was at 24.33%, evidencing fierce competition among bidders.
During this 29-minute open bidding window, the offers kept emerging higher and higher. At 8:29 a.m., one bidder had already proposed a 31% gross revenue transfer. Moving to the closed phase of the auction, LottoPro presented its final bid of 43.36%, outbidding three other proposals of 35.33%, 30.99%, and 36.11%, respectively.
At 8:40 a.m., the meeting was recessed for review of LottoPro cost spreadsheets. The public meeting then closed at 9:55 a.m.
Company Profile and Operational Experience
LottoPro is established on 3 September 2024, with a registered capital of R$ 20 million and five partners: Adriano Aristoteles Vieira de Mendonca, Alex Forte da Silva, Hiago Bezerra de Sousa Lima Piau, Reno Ramalho de Vasconcelos, and Thyago Correa Marques dos Santos.
In spite of its recent incorporation, the company already operates the municipal lotteries of eight Brazilian cities: Assunção do Piauí, Patos do Piauí, Marcolândia do Piauí, and Tatuí in São Paulo, besides Muquém de São Francisco in Bahia, Teresópolis in Rio de Janeiro, Tutóia in Maranhão, and Quijingue also in Bahia.
During the course of the direct negotiations, the auctioneer asked for an improved offer, which LottoPro replied it had already obtained and was offering the maximum feasible percentage.
Contract Terms and Next Steps
The contract will be for 10 years, and it has an estimated value of R$ 51,474,339.31, equal to the forecasted service revenue. The tender provides that the operator shall carry out all the necessary system updates throughout the contract period.
At the end of the agreement, the source code of the platform and exclusive system information shall be transferred to the state government, which shall gain full, unrestricted ownership of the technological solution.
This is followed by the proof of concept, where LottoPro will be formally convened through publication in the State Official Gazette.
Lotesul’s Return After Years of Inactivity
Lotesul has been inactive for more than 15 years. Recently, its new brand was presented on the state government website with the flag of Mato Grosso do Sul embedded in the “O” and with a four-leaf clover, using the colors green and blue.
The current auction is the third try after two failed attempts in 2025. The first, which was launched on March 17, lasted just two minutes before being brought to a standstill. The second one, on December 15, was also suspended. Presently, the process is a major move toward reviving the activities of the state lottery.
Source: BNL Data
