IGT and Scientific Games released a joint statement they will be withdrawing from the bid as the first national instant lottery concession in Brazil. The companies were granted the LOTEX Concession last year, in October 2019. In addition to the concession, the companies wanted to sign a distribution agreement with CAIXA Econômica, an operator of the largest lottery retailer network in Brazil. However, despite settling on an agreement, “CAIXA failed to authorize its execution by the concession deadline”, and the joint venture didn’t receive an extension from the government either.
In the released statement, Walter Bugno, IGT EVP New Business and Strategic Initiatives, and Michael Conforti, President Global Strategic Accounts from Scientific Games, said, “The 13,000 lottery retailers within the CAIXA network are fundamental to a successful launch of the instant ticket business in Brazil and without such distribution network, the companies were not prepared to move forward.”
Additionally, on September 30, 2020, the Supreme Court of Brazil ruled that the lottery monopoly ran by the federal government was unconstitutional, so each of Brazil's 26 states and one federal district will likely develop state lotteries.
Write a review