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Without a signed contract with IGT and Scientific Games, Lotex to have a new auction

After nearly two years of the auction of Lotex, the lottery known as 'scratch card', Brazilian government is closing the process with the winning consortium and redesigning the model, considering the decision of the Supreme Court (STF) that understood that the Union has no monopoly on the exploitation of lotteries. But, according to what Gustavo Guimarães, secretary of Evaluation, Planning, Energy and Lottery, told to Valor, there is still no date for a new auction.

We are already working using the STF decision to try to model Lotex and once again put this type of instant lottery on the market,” says Guimarães.

According to him, the STF decision, which makes room for state lotteries, creates new possibilities and should increase competition.

Discussions are ongoing with the PPI (Investment Partnership Program) and the National Bank for Economic and Social Development (BNDES).

In 2019, the Estrela consortium - formed by the British International Game Technology (IGT) and the American Scientific Games International (SGI) - won Lotex in an auction without dispute, paying the stipulated minimum grant amount. In October 2020, the companies released a statement saying that “prudent capital management” dictated that they withdraw from the process.

The following month, the Undersecretary for Prizes and Draws at the Ministry of Economy, Waldir Eustáquio Marques Júnior, told Valor that the consortium had not withdrawn from the concession and the documents were still being analyzed by the folder. After the deadlines, the contract was not signed.

Source: Valor