Operator News
Brazil – Lotex announces road shows in Brazil ahead of sell off
By Phil - 12 April 2018
The Brazilian Development Bank (BNDES) has invited companies interested in bidding for Instant Lottery Lotex to road shows, which will take place in Sao Palo and Rio de Janeiro.
BNDES has called on local and foreign companies to participate in further meetings with ministry officials in order to clarify any last questions before bidding for the granting of the Brazilian Instant lottery begins. The first meeting will be on Thursday (April 12) in Sao Paulo and the second next Tuesday (April 17) in Rio de Janeiro.
The announcement follows the publication of a decree in Brazil’s federal government’s Official Gazette last week. According to the text of the decree, the licence will cover sales in both physical retailers and online. Each series of bets will be marketed according to the distribution plan approved by the Ministry of Finance. The challenge for a potential investor is to build a large distributio channel with over 60,000 points of sale.
The greatest share of revenue, 65 per cent, will be destined for prizes. 18.3 per cent will be allotted for operator revenue while the remaining 16.7 per cent will go to the government. The auction will take place on June 14, 2018. Key players in the industry are likely to take part including IGT, Scientific Games, Playtech and Intralot, among others.
In September 2016 the largest state owned bank and lottery operator – the Caixa Econômica Federal (CAIXA) announced that its instant lottery ticket arm would be auctioned off as part of a 25-point plan designed to kick-start the economy. Meanwhile CAIXA will continue to run and operate traditional lotteries such as its most popular lottery the Mega-Sena. The sale is part of a huge asset sale which could help the government manage to cut the widening budget gap and reduce rising public debt.
Production of instants was officially discontinued in March 2015 and their sale discontinued in November 2016 after a new operating model was established for the game. This management model entailed the creation of new type of instant lottery called the Loteria Exclusiva Instantânea, or Lotex a wholly owned subsidiary of CAIXA. The Brazilian Development Bank (BNDES) a federal public company associated with the Ministry of Development, Industry, and Trade and the main financing agent for development in Brazil has been overseeing the privatisation process.
