SBC News Brazil calls for a rethink on LOTEX's future

Brazil calls for a rethink on LOTEX’s future

The government of Brazil is reported to be ‘assessing its options’ with regards to the sale of state-owned Instant Win (Scratch Card) operator LOTEX – following six straight tender postponements.

A reported ‘lack of interest’, would see BNDES, Brazil’s National Development Bank twice suspend this May’s planned tender procedure.

BNDES, the agency charged with selling LOTEX, has come under fire from politicians and the media, for its numerous blunders in selling the state asset.

Once regarded as the ‘hottest tender prospect’ for global lottery stakeholders, a more than two-year delay in the sanctioning of a LOTEX auction has seen interest wane in acquiring the  Brazilian Scratch Card business.

In previous failed attempts, international operators had refused to participate in BNDES tender process, stating that the Brazilian government had failed to clarify the position of federal bank Caixa Federal, the operating company and distributor of LOTEX products.

Taking office this January, the new Liberal Party government of Jair Bolsonaro, stated that it would press BNDES to conclude the LOTEX by the first half of 2019.

Missing it schedule, the Brazil government is reported to be in dialogue with LOTEX and CAIXA government stakeholders with regards to ‘exploring alternatives’ with regards to the asset’s future.

In previous updates, Brazilian business news sources, have underlined the importance of successful LOTEX sale, as in-debted CAIXA seeks to raise BRL $100 billion (€22 billion) selling its assets and equity in state-owned investments.

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