Upfront concession fee to fund hospital construction as Scientific Games–Brightstar joint venture begins statewide lottery rollout
The Government of the State of São Paulo has formally signed a new lottery concession contract with SP Loterias, a move expected to generate up to BR4bn (€740m) in public revenue over the next 15 years while reshaping the state’s regulated lottery market. The agreement represents one of the most significant lottery concessions awarded at the state level in Brazil and is positioned as a key funding mechanism for public infrastructure and social services.
Under the terms of the contract, São Paulo will immediately receive BR560m in fixed concession fees. State officials confirmed that these upfront funds will be earmarked for the construction of two new state hospitals located in inland regions, addressing long-standing gaps in healthcare access outside the capital and metropolitan areas. The hospital projects are expected to be among the first visible public benefits arising from the new lottery framework.
Beyond the initial payment, the concession is projected to generate approximately BR3.4bn in variable fees over the duration of the 15-year contract. These revenues will be tied to lottery sales performance and are expected to provide a stable, long-term funding stream for public initiatives, reinforcing the state’s broader strategy of leveraging regulated gaming to support social investment.
The concession places operational responsibility with SP Loterias SPE S.A., a special-purpose entity formed as a joint venture between Scientific Games and Brightstar Global Solutions. Both companies bring extensive international experience in lottery operations, technology deployment and omnichannel distribution, which the state government views as critical to ensuring operational efficiency, transparency and regulatory compliance.
Under the agreement, SP Loterias is authorised to operate lottery products across both physical and digital channels. The initial rollout includes 31 exclusive lottery units and up to 11,000 authorised points of sale distributed throughout São Paulo State. Approved products cover a broad range of offerings, including numerical lotteries, passive lotteries, sports-based lotteries and instant games such as scratchcards, designed to appeal to diverse player demographics.
The contract also incorporates specific safeguards aimed at protecting minors. Lottery sales outlets must be located at least 300 metres from schools and daycare centres, and access to lottery products by children and adolescents is strictly prohibited. These measures align with state and federal principles on consumer protection and responsible gambling.
The signing follows the disqualification of the Aposta Vencedora consortium, which originally won the November auction but failed to pay the required BR600m concession fee within the stipulated deadline. After formally removing the group from the process, the São Paulo government invited SP Loterias, the second-ranked bidder, to proceed. The consortium was granted a 60-day period to complete formal requirements, culminating in the final execution of the contract.
Officials have described the agreement as a milestone in São Paulo’s lottery reform agenda, combining fiscal returns, social safeguards and operational credibility within a modern regulatory framework.
