Brazil’s instant lottery privatization has run aground after the International Game Technology–Scientific Games consortium said it’s backing out of the process.
Last year, IGT and Sci-Games teamed up on a joint bid for Brazil’s Exclusive Instant Lottery (LOTEX) concession. It definitely helped that this Estrela Instantânea consortium was the only bidder and Brazil’s previous privatization efforts proved to be a harder sell than the government envisioned.
On Tuesday, the consortium announced that it would “withdraw from the process and re-evaluate the business case of implementing a lottery operations model in Brazil.” The consortium left open the possibility that it might “explore the possibility of re-engaging in the process,” but it wants certain government assurances first.
For one thing, the consortium wants the government to lean on CAIXA Economica, which operates Brazil’s largest retail lottery network involving some 13k points of sale.