Brazil’s bid to privatise state lottery fails

The attempt made by the Brazillian federal government to privatise the state’s instant lottery service (Lotex) has ended in failure, as no private companies submitted their proposals to participate in the project. The government had invited proposals from private players who are interested in operating the lottery service.

The government was planning to receive around US$144 million from this move. The proceeds were supposed to be utilised to fund higher public security. But the whole project will have to shelved now, as no investors were willing to invest on this business opportunity.

According to a source close to the process, quoted by BNAmericas, the main reason why the Lotex auction was unsuccessful was that the Caixa Econômica Federal bank was barred from participating. The state-run financial institution could have been a concern for potential investors as it currently oversees other lotteries. However, no private companies posted any offer anyway so the government may rethink its strategy and relaunch the bidding process.

Source: FocusGamingNews