São Paulo is expected to collect R$ 2 billion per year from its own lottery.
The State of São Paulo is expected to collect around R$ 2 billion per year from operating its own lottery system. This is according to a study presented in November to the São Paulo government by the SP Lotto consortium, a group formed by Grupo Santa Casa Global and MCE Intermediações e Negócios, which conducted feasibility studies for the implementation of lottery games.
The project that creates the São Paulo State Lottery was approved in June of this year by the State Legislative Assembly and sanctioned by Governor João Doria in July. Now, the state government is defining the model to launch the bidding process that will delegate the implementation, operation, and exploitation of the games to the private sector.
To calculate the potential annual revenue of the future São Paulo lottery, the SP Lotto consortium projected weekly bets, estimated at 1,76 million, representing 3,78% of the total population of São Paulo. The consortium projects growth in the betting population to 7,56% of the total population in the next 10 years. The current average weekly ticket price per bet was calculated at R$ 29,53.
According to the study presented by the consortium, the population with income between 5,20 and 8,67 minimum wages represents 20,5% of the total recurring bettors, followed by those who earn between 2,6 and 5,2 minimum wages, who account for 19% of people who bet every week. The study also estimated the number of points of sale for the operation of state lottery games in São Paulo at 41,8 throughout the state.
The implementation of the São Paulo state lottery will occur after a decision by the Supreme Federal Court (STF) to end Decree-Law No. 204/67, which guaranteed the Union's monopoly on the operation of lottery activities. The lottery market is highly attractive. In 2020 alone, Caixa Econômica Federal (CEF) collected more than R$ 17 billion from bets – 40% of which came from Mega-Sena – a historical record that could be expanded with the implementation of state lottery games. The SP Lotto consortium also suggested to the Government of São Paulo that it allocate the resources from the operation of lottery games to areas such as health, education, social development, sports, culture, science and technology.
Santa Casa Global Brasil (SCG Brasil), a member of the SP Lotto Consortium, is a Brazilian company integrated into the Santa Casa da Misericórdia de Lisboa Group, created with the objective of enabling the realization of the internationalization strategy that this institution adopted in June of last year. Santa Casa de Lisboa has continuously undertaken its mission of marketing and operating state-run social games in Portugal, having created a specific area for this purpose – the Games Department – professionalizing its management and continuously investing in innovation and the launch of new games.
MCE Intermediações e Negócios has experience in developing capitalization and multiple-chance products, having operated in the Federal District market with various products. In the Brazilian market since 2016, it has developed techniques for market strategies, marketing, sales, distribution, and new branding applicable to the market. In 2020, MCE significantly expanded its scope of operations by winning the bid from the State of Rio de Janeiro to operate the conventional multiple-chance market.
In 2021, MCE strengthened its institutional partnerships with Santa Casa da Misericórdia de Lisboa, an institution with over 500 years of history and one of the leading exponents of lottery products in the world. ( Terra Notícias )
