The fintech company Idea Maker, based in São Paulo, has taken a leading position in the bidding for the lottery operation rights in Lotesul, Mato Grosso do Sul. After its competitor Prohards was technically disqualified, Idea Maker entered the final stage of the bidding. The franchise is expected to generate an annual revenue of approximately 51.4 million Brazilian reais, and the winning company will be responsible for developing and maintaining the technical infrastructure for digital lottery operations. In plain terms, a fintech company is taking over a state's lottery system, offering a revenue-sharing percentage more than double what the government requested.
Financial Proposal: 35.33% revenue share far exceeds the 14.33% baseline
Idea Maker's financial proposal in the bidding far exceeds the minimum requirements of the tender rules. The company promises to transfer 35.33% of the total lottery revenue to the government of Mato Grosso do Sul, while the tender notice only requires 14.33% of the revenue to be handed over to the state government. Among all companies still in the bidding, this proposal offers the highest revenue-sharing percentage. If ultimately successful, it will bring significant revenue growth to the state's finances. The franchise framework ensures that operators directly contribute to public finances through revenue sharing, while the government can maintain oversight of lottery operations while relying on a privately managed technology platform.
Regional Layout: Involved in developing state applications, business covers multiple states
Idea Maker, established in 2011, has established its business in the region by participating in the development of the MS Cap application. This platform replaced the Pantanal Cap capitalization bonds in 2021 and currently operates in the state's financial and lottery ecosystem. The company is led by executives Jorge Ramos de Oliveira Junior and entrepreneur Marcelo Augusto Gali, with a registered capital of 5.5 million Brazilian reais, and its business covers São Paulo, Minas Gerais, Paraná, and Santa Catarina, among other states. Winning the Lotesul contract will expand its business into new areas of state-level lottery operations.
Next Steps: Concept validation tests and potential appeals
Although Idea Maker has made progress, the franchise has not yet been finalized. The company must complete the concept validation phase, proving that its proposed platform can handle the full scope of lottery operations, including verifying bets, controlling transactions, and managing prize payments. The government of Mato Grosso do Sul will announce the actual testing schedule through official bulletins. Meanwhile, the disqualified competitor Prohards has indicated that it will file a formal appeal, which will be submitted after the evaluation and qualification stages are completed. Therefore, the final outcome of the franchise remains uncertain. Interested in the latest developments in the Brazilian lottery and gambling market? PASA's official website continues to track.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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