The bidding process for 7 new lottery outlets could be a disaster for the sector.
Febralot sent an official letter to Caixa Econômica Federal at the end of March and, at the beginning of April, to the President of the Republic, Jair Bolsonaro. In the document, the entity condemns the possible 7 new lottery unit tenders planned by Caixa and emphasizes that, as foreseen in item V of article 3 of Law No. 12.869/2013 and also in item 13.1 of CAIXA Circular 745/2017, a technical feasibility study is necessary for new stores to be opened, and this has not been done or has not been shown to the Federation or to the general population, who should be aware of it.
An example of what can happen is illustrated in the case of the lottery outlet in the city of Nova Aliança do Ivaí. The businessman from Paraná reports that in the neighboring city of Nova Aliança do Ivaí, the lottery outlet owner closed the month with a maximum collection of R$ 300,00 in games. With an estimated population of only 1.527 inhabitants, the lottery outlet was the only banking location, making it difficult for the businessman to maintain the unit's operation due to the low revenue. Gross revenue in places like these ranges between R$ 2000,00 and R$ 3000,00 per month. In conclusion, the unit closed its doors because it could not cover its expenses, and few businessmen will risk trying to reopen this unit, which will deprive the population of one of the few, perhaps the only, banking locations for their bill payments.
The current situation is already critical and could worsen if the opening of another 7 lottery outlets across the country is carried out without a proper feasibility study. Febralot demands that this study be included in the descriptive text of the tenders so that future candidates have a real understanding of the viability of the high investment required to install these units. Justifying the economic and financial viability of the venture is a way to clarify to inexperienced entrepreneurs aspiring to operate in the sector that the risk is much greater than it seems and, depending on the location, the activity is already doomed to failure even before it begins.
Currently, the Lottery Network comprises approximately 13 units that efficiently meet 100% of the population's needs. More than 100 million people are served, and there is no need to expand the number of units, especially considering that a large portion of current business owners are already indebted.
Febralot demands that existing stores be prioritized by the Caixa management company, not considered a second option. This fragmentation of the business will only increase predatory competition, definitively condemning those entrepreneurs who miraculously still manage to stay afloat. Furthermore, year after year the management company presents billions in surplus in its financial statements and, with the new tenders, could achieve record revenue. However, many entrepreneurs already in the business have been facing problems for years, without a solution to their bankrupt situation. It is essential that the public and related organizations are aware of and support this cause.
What the Brazilian Federation of Lottery Companies is asking for is the pure and simple enforcement of the law, which in itself eliminates the possibility of yet another disaster for the sector. ( Febralot News )
