First Meeting of The Year Between Lottery Leaders Outlines The Most Relevant Work Actions

January 30, 2023 | Lottery News

BRAZIL (January 27, 2023) — On the last 23rd, Febralot’s Board of Directors, State Unions, and Vice-Presidents of Network, Information Technology, and Lotteries, in addition to the Executives of CAIXA Econômica Federal, linked to Rede Lotérica, met. This meeting, as it is the first of the year, serves for FEBRALOT to exchange ideas with the Bank’s representatives and outline the goals for the year 2023.

The Brazilian Federation of Lottery Companies – Febralot sent the agenda in advance to CAIXA and started the meeting with the presentation of Lottery results from seven regions by the Presidents of the corresponding Unions. Presentations were made from the following Unions: Ceará, Triângulo Mineiro, Pernambuco, Rio de Janeiro, Tocantins, Santa Catarina, and São Paulo. In all presentations, it was clear that, in view of the 2022 inflation, there was a drop in collection in banking services and an increase in Games and Bolões, however, the latter two and the negotiation were not enough to offset the revenue corrected for inflation in previous years.

In view of these presentations, FEBRALOT and CAIXA were left with the following proposals, in summary:

Create Services and Products exclusive to Lotteries;
Massive and continuous campaign for the + Millionaire modality;
Institutional Campaign, which emphasizes the social contribution and security that the services provided by Lotteries provide to Brazilian society;
Specific campaigns by CAIXA on Negotiation in Lotteries.

Then, CAIXA began its presentations:

Júlio Volpp – Retail Network VP:

The VP of the Network thanked the presentations made by the Presidents of the Unions and said that the issue of requested campaigns was impaired last year, as it was an election year and their expenses were limited by the specific law and that this year will be different, including that there is already a new way of acting in support of Lotteries in addition to the support of the General Managers of the branches and that this depends on approval by Caixa’s Governance to what will be done as soon as the new President defines the new guidelines for the Bank.

Then, some data on the billing of the lottery network in 2022 were presented:

Lottery Revenue: BRL 23.2 billion (+25.7% over 2021)

Amount of bets: BRL 2.26 billion (+9% over 2021)

Remuneration for lottery sales with games: BRL 3.25 billion (+29.6% over 2021)

Total billing for Lotteries: BRL 4.98 billion, of which: Games: BRL 2.6 billion – a highlight for the Mega Sena with a 44% share. Business: BRL 220 million – a highlight for the payroll loan with a 60% share in 1.7 million in contracts with BRL 4.4 billion contracted.

Banking Services: BRL 2.1 billion

Insurance: R$ 7.1 million – the highlight for credit life insurance, which increased by 38%.

Regarding the sale of sweepstakes, he pointed out that while the top 100 lottery sales companies earned BRL 88.7 million with the product, another 247 lottery companies did not sell the product, showing that there is room to seek remuneration with this product.

Other information about the Network Vice-Presidency

Acceptance of cards from other banks on the TFL pin pad depends on the correct service configuration requested by the bank’s governance area in compliance with BACEN resolution 50 and that this will soon be overcome and they will be able to inform the start date of the service in lottery shops.
Banking certifications are a requirement of the central bank and only with them will the lottery be qualified to provide trading services. Regarding the LGPD certification, those who applied until 12.31.2022 can only search for it on the website of the Universidade Parceiros/SEBRAE, otherwise, they will have to seek external certification.
CCA’s (Box here) can only be installed less than 1000 meters away from a UL if Lotérica does not carry out the business activity.
During the year 2022, the lottery companies that started to do business increased from 5500 to 11,000, thus doubling the number of ULs able to do business.
In 2022, 1.2 million transactions were made at TFLs with R$158 million in transactions and lottery remuneration of R$846,000, each time the modality has been consolidating and enabling the integration of Lotérica with all banks.
152 million social benefit payments were made at lottery outlets in 2022.
The transmission of the value sent in the armored car by “Conexão Parceiros” increased from R$ 500 thousand to R$ 1 million as of 01.23.2023.

Finally, the Bank’s Network Executives presented the improvements implemented in 2022.

Eduardo Scherer – Acting VP Information Technology:

The IT Executive presented, in three blocks, the measures he is taking to improve the efficiency of the SISPL and minimize the problems of crashes and slowness:

Transmissão (Rede), a R$ 700 million contract was closed with a transmission supplier, based on specifications of transmission speed and architecture to be borne by the supplier, in accordance with availability in the region of each UL, in 4 months, all the ULs will be contemplated, for those that need specific civil works, a new deadline will be negotiated.
A bidding process for 12,500 new TFLs was held, but the supplier that lost the competition called the TCU disagreed with the result. Another 27,500 TFLs will be auctioned for the exchange of all TFLs on the Network.
With regard to the operation, the IT area is holding frequent meetings with the CIP (FEBRABAN’s payment slip registration base) in order to improve the interface between the Bank and the payment slip platform, the Executive also informed that he personally monitors the availability of the system in your room.

Edilson Carrogi – VP of Government Funds and Lotteries :

The Lotteries area presented the improvements made throughout 2022 and commented on the advertising problems in particular at Mega da Virada, where they were limited by the law imposed on public companies in election years, thus informing that in 2023 advertising will be much greater and better, highlighting in addition to the special contests, the return of advertising for the +Millionaire modality with more emphasis on the months of February, May, July, and October, but continuously throughout the year and there will be, according to the regulation, the incorporation of the Initial Prize Guarantee Reserve (RGP) to the contest that coincides with a year of the launch of the modality, in the case until then, the main prize does not come out. He also informed that institutional advertisements will be made, mainly aimed at Parliamentarians to show the importance of maintaining and improving the current payout (percentage of the amount collected that goes to the prize), in the sense that no more laws are made for new destinations on the part of the collection of the Caixa Lotteries.

The new implementations under study were presented:

Totem is linked to Lotérica for the sale of games with payment solutions via any bank card, within Lotérica, or outside the coverage area.
Instant Lottery (Scratch Card), action with the new government to receive temporary authorization for marketing by Rede Lotérica until there is a definition on the continuity of the bidding process or incorporation of Lotex into Caixa Econômica Federal.
New Lotteries to contemplate the law of allocation of resources for the Ministries of Tourism and Health with cheaper bet value, game mechanics and also simple prizes.
Readjustment of the value of bets is unfeasible for the first half of the year according to CAIXA studies, for the second half of the year, specific adjustments are being evaluated, starting with Lotofácil.
New initiatives to reduce the cost and time of operations to reduce sales effort and sell more.

Other information about the Network Vice-Presidency

Participation in the box’s online games in the Mega da Virada was 30% and in the regular contests 15%
In 2022, Lottery prizes increased by 23%.
Participation of bets and sweepstakes in lottery collection:

2022 2021

Bets – 80.7% 83.6%

Lottery ticket – 13.9% 13.0%

Customer Pool – 5.4% 3.4%

Collecting Bolão Lottery – (in R$ million) – Evolution of the previous year

2019 – 1885.2

2020 – 2069.8 – 9.8%

2021 – 2366.6 – 14.3%

2022 – 3183.1 – 34.5

Logistics Area:

Due to problems with the supply of coils and flywheels, the Executives of the responsible area were called to participate in this meeting via video conference, having presented the following actions to eradicate the problem:

Input factory working 24 hours a day, seven days a week.
Improvements on the JADLOG website for order management
Deliveries will be normalized in 10 days (beginning of February).
The normal order-to-receive cycle should be 17-22 days depending on the region.

The area requested that lotteries place regular orders, every month, so as not to mask average consumption and always take into account that the stock needed to avoid shortages is 60 days.

Conclusion

Febralot and the State Unions, based on the information exchanged at this meeting, decided to focus their efforts on the following actions for 2023:

Approve in the Senate and enact the PEC that gives security to Lotteries regarding the time of permission;
Demand that there be adequate advertising for Lotteries, not only for the products and services offered, as well as the benefits that the activity brings to customers, beneficiaries, and the general population;
New services and products for the Network in order to eradicate current idleness;
Give more administrative assistance to the lotteries, through a better structure on the part of the Caixa branches;
Definitively resolve the payment option for products and services through cards of all banks;
Adapt the availability of the operating system (SISPL) to the needs of the lotteries and, mainly, the customers;
Prevent the shortage of coils and flywheels from occurring.
Seek readjustment of remuneration for products and services to adjust the financial balance of the operation.

It is worth remembering that for this meeting to take place, it is necessary for the union presidents to represent the lottery entrepreneurs in their home states and the participation of each entrepreneur in their unions through association and contribution is what makes this administrative machine work. Without this work, there is no voice and defense of the Category’s interests.

That’s why we insist. Join your union, and contribute.

Together we are stronger!! Lotteries are worth more!!!

The board, Febralot.