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The São Paulo state government has finalized a 15-year lottery concession contract with SP Loterias that is projected to generate up to BR4 billion ($738 million) in public revenue over the contract term.
The agreement provides for an immediate BR560 million in fixed concession fees, which the state administration has earmarked for the construction of two public hospitals in the interior regions of São Paulo state.
Operational Structure and Revenue Model
SP Loterias will operate under the corporate structure of SP Loterias SPE S.A., a joint venture established by Scientific Games and Brightstar Global Solutions. Beyond the upfront payment, the concession is expected to generate approximately BR3.4 billion in variable fees throughout the 15-year contract duration.
The concession authorizes the operator to deliver lottery products through physical and digital distribution channels. The initial deployment includes 31 exclusive lottery facilities and up to 11,000 authorized retail points of sale across São Paulo state.
Approved Product Portfolio
The contract covers a range of lottery products, including:
- Numerical lotteries
- Passive lotteries
- Sports-based lottery products
- Instant games, including scratchcards
Fixed-odds sports betting remains explicitly excluded from the scope of this concession.
Youth Protection Measures
The concession contract incorporates specific safeguards designed to protect minors from exposure to lottery products. Lottery sales locations must be situated at least 300 meters from schools and daycare facilities, and the sale of lottery products to minors is strictly prohibited.
Background and Award Process
The concession follows the disqualification of the Aposta Vencedora consortium, which had initially won the November 2024 auction but failed to remit the required BR600 million concession fee within the established deadline. Following the formal removal of Aposta Vencedora from the process, the São Paulo government invited SP Loterias, the second-ranked bidder, to advance with contract execution.
SP Loterias was granted a 60-day period to complete all formalities and execute the agreement, a process that has now been successfully concluded.
The new concession represents a significant development in São Paulo’s regulated lottery market, with substantial public revenue directed toward healthcare infrastructure improvements across the state.
Source: São Paulo State Government
