Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Secap Publication Consolidates Data on Authorized Trade Promotions

Lotteries

There was a 34% increase in the number of authorizations granted for commercial promotions between 2015 and 2018.

The Secretariat for Evaluation, Planning, Energy and Lottery (Secap) will consolidate, starting in the September issue of the quarterly lottery bulletin, the main figures for authorized commercial promotions. The measure is part of initiatives to make the theme more transparent. The data is available in  the Lottery Market Monitoring and Trade Promotion Bulletin,  released on Tuesday (9/10).

The report notes that between 2015 and 2018, there was a 34% increase in the number of authorizations granted for commercial promotions. According to the Secretariat's assessment, it is expected that during 2019 this number will increase substantially. This is because, seasonally, the last quarter of the year concentrates the largest number of requests and authorizations of commercial promotions.

Understand

Commercial promotion, or free distribution of prizes, is a marketing strategy that aims to leverage the sale of products, services, promotion of brands or images and its realization depends on prior authorization.

Today only the Ministry of Economy and the Private Insurance Superintendence (Susep) have the power to authorize promotional campaigns. Until June, this authorization was also made by Caixa Econômica Federal.

Lotteries

According to the report, federal lottery revenues increased 53% in nominal terms in Q2 2019 from the same period last year, from a total of R $ 3.12 billion to R $ 4.76. billion. In real terms, the increase was 48%.

In the period, the ratio between the collection and the Gross Domestic Product (GDP) was 0.27%, which represents a significant increase compared to the previous years: since 2015, this rate for the second quarter varied from 0, 18% to 0.23%.

With the largest collection, the allocation of funds raised by lotteries to government programs also rose (51%, in nominal terms, compared to the second quarter of 2018), from R $ 1.48 billion to R $ 2.24 billion.

Public consultation

1,849 contributions were received to the public consultation on the regulation of the “fixed quota” sports betting market launched by Secap on June 30th. According to the secretariat, in the coming weeks a new public consultation should be released with the draft decree to be prepared incorporating the suggestions sent by society.

With this, the objective will be to establish a regulatory model aligned with the best world practices, which provides a competitive environment for the lottery sector. This model should also address issues essential to the future operation of the public service, with the adoption of modern security, integrity,  accountability , corporate social responsibility, fraud prevention and money laundering practices.

Lotex

In the newsletter, Secap points out that it has begun studies to adjust Lotex's concession model to attract other potential investors to the competition. The minimum technical capacity requirements required to operate in Brazil were reduced by modifying the amount of the minimum instant lottery collection obtained in other countries that must be proven by the potential dealer.

With this, it will be necessary to prove a collection of R $ 560 million with such operation over the last 12 months - the announcement initially provided for a value of R $ 1.2 billion. In addition, there was a relaxation of the financial conditions to come to operate in Brazil, with the possibility of installment payments of up to eight times the grant amount.

The Lotex auction is scheduled for October 22, 2019, with delivery of bid envelopes scheduled for October 17.