It will be held October 22

Brazil: Date of Lotex auction confirmed

Auction candidates can submit their bids until October 17, as the auction is set to take place October 22.
2019-09-03
Reading time 1:19 min
Auction candidates must have proven experience in instant lottery operation that has generated at least US$ 135 million in twelve months, in accordance with the rules published in the Brazilian government gazette.

On Friday, the rules of the licensing process for the instant lottery Lotex were published in the Official Gazette, through a resolution by the Investment Partnership Program (PPI) as part of the government’s efforts to privatize the ‘raspadinha’, currently operated by Caixa. The rules outline two key points: license fee payments and a requirement to demonstrate experience in the operation of instant lotteries or online gaming businesses.

Auction candidates must also demonstrate that such operation experience generated at least US$ 135 million in twelve months, less than half of the amount previously required when it stood at US$ 288 million.

Moreover, the number of installments for the payment of the license fee was increased from four to eight. The license holder would make seven annual payments as of the execution of the agreement. The license will have a term of 15 years.

The Brazilian government has been trying to grant the private sector the right to run Lotex, but all attempts have failed due to lack of interest from potential stakeholders. After the successive presentations of Lotex to international investors, the government made the first auction attempt in July last year but had to postpone it because of low interest.

Auction candidates can submit their bids until October 17, as the auction is set to take place October 22.

Eight state-owned companies including Lotex were already part of the privatization program and nine more have now been added. Salim Mattar, the Secretary of State specializing in the Privatization, Divestment, and Markets Division, and who is overseeing the sell-off package, said that the minimum price of Lotex was too high. This he said explained the failure of the auctions so far. However the current resolution does not lower the minimum license fee.

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