fter seven failed attempts to sanction an effective tender process, BNDES – Brazil’s national development bank confirmed the sale of state-owned instant win games (scratchcard) operator LOTEX to Consórcio Estrela Instantânea – a 50/50 joint venture consortium formed by IGT and Scientific Games.
"The award of the Brazilian LOTEX concession represents an important step towards the privatization of lottery instant games in Brazil, the world’s eighth-largest economy. We are excited and honored by this opportunity for IGT and Scientific Games to help define the evolution of instant lottery in Brazil through a 50-50 joint venture over the next 15 years. This business partnership will benefit the people and government of Brazil and brings together the vast experience and market leadership of global leaders in the instant game market to help position LOTEX for success," said Walter Bugno, IGT CEO International and Pat McHugh, Scientific Games, EVP & Group Chief Executive.
Estrela Instantânea will replace CAIXA, Brazil’s federal bank, as the operator of LOTEX which has serviced all of Brazil’s lottery contracts since the 1960s, SBC News reports.
Agreeing to BNDES’ reformed terms, IGT and Scientific Games are set to pay a further seven installments of R$103 million (USD 25 M), valuing the LOTEX contract at R$ 820 million (USD 200 M) for Brazil’s ‘PPI Partnerships & Investment Program’.
Operational terms will see the IGT-SGC consortium pay 17% of revenues to the Brazilian government, which targets generating R$19 billion (USD 4.6) in funds during the 15-year concession.
The IGT-SGC concession is expected to begin by mid-2020.