The privatization of the country’s state’s instant lottery games business Loteria Exclusiva Instantânea (Lotex) has once again been postponed in Brazil. The reason for stalling the privatization process is that the potential bidding companies have not shown interest in the deal.
The privatization deal has been postponed multiple times, and this is the second time in May – earlier it was scheduled to be finalized on May 28. However, the government changed its decision once again.
Now, Brazil’s Investment Partnerships Programme (PPI) has said that the government is exploring alternatives and would be talking to potential bidding companies and then make a decision on how to proceed further. However, they confirmed that they are still pursuing the idea of privatizing the country’s instant lottery games business to increase the competition in the market.
Earlier in April, in a bid to expand gambling and gaming in the country the Brazilian Senate had approved the MP 846 bill that calls for legalizing sports betting in Brazil.
Caixa Econômica Federal (CAIXA), which is also the largest bank in Brazil, operates the national instant lottery business. The plan to privatize state lottery first came up in 2017 and as it was decided to dispose of state assets to generate revenue and reduce the country’s fiscal deficit.
Initially, the government had been planning to raise $300m (£237.6m/€269.4m) from the sale of the Lotex tender. According to the current provisions of the privatization deal, the winning bidder would get “exclusive rights to offer online and physical instant win games in the country for 15 years.”
However, the plan has never materialized and has been postponed multiple times since 2017.