How many times will Brazil attempt to auction off the state’s instant lottery games business, Loteria Exclusiva Instantânea, or Lotex? On May 28, a lack of interested bidders once again foiled hopes that a private company would take control of the concession.
According to CDC Gaming Reports, the country’s Investment Partnerships Program said the government would “enter into dialogue with the industry and explore alternatives before deciding on its next steps.” Its ultimate goal remains to privatize Lotex and increase competition in Brazil’s national lottery market.
In 2017, Brazilian President Michel Temer issued a decree transferring the responsibility to privatize Lotex to the BNDES and the Ministry of Finance. According to initial estimates, the sale could generate around R$2.2 billion (US$561 million) for the government.
According to Brazilian journal O Globo, citing data from the IPP, the minimum bid was expected to come in at about R$640 million (US$117 million), down from R$1 billion (US$253 million). In 2017, Caixa registered revenues of almost R$14 billion, of which 48 percent went to social programs. Unions that oppose the sell-off argue that if the sale is carried out, those resources will be reduced drastically.
Now SBC News reports that the government is “assessing its options” with regards to the sale of the Instant Win operator, which was once regarded as the “hottest tender prospect” for global lottery stakeholders.
