Brazil fails to legalise state lottery

The instant lottery Lotex could not be privatised as there were no proposals presented to invest in the state-run company.

Brazil.- The Brazillian federal government has failed to privatise the state’s instant lottery service (Lotex) as no private companies were interested in invesitng. The authorities’ plan turned out to be unsuccessful and its intentions to give any suitable company a 15-year concession to operate the businees will have to wait, at least for now.

President Michel Temer’s administration projected to get around US$144 million from the concession should any company submitted an offer. The proceeds were to finance higher public security but no investors showed any interest for the business opportunity and the strategy didn’t turn out.

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’ve 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.