IGT & Scientific Games Pull Out Of Brazil Lottery Venture

Scientific Games and IGT have both announced they are withdrawing from their bids to be the first national instant lottery concession in Brazil.

Both companies were given the LOTEX concession in October 2019 and also wanted to join forces with the largest lottery retailer network in Brazil in the form of CAIXA Econômica, but for some reason CAIXA did not formally register the deal by the deadline date set by the government and so the venture between all three parties was not granted.

Both IGT & Scientific Games said: “The 13,000 lottery retailers within the CAIXA network are fundamental to a successful launch of the instant ticket business in Brazil and without such distribution network, the companies were not prepared to move forward.”

Along with the failure to cement the joint venture in time many believe that CAIXA delayed the venture as a recent Supreme court ruling in Brazil ruled that the government run state lottery was unconstitutional and as such each of the 26 states that make up Brazil can do their own separate lottery.

This is believed to have made the deal more difficult for all parties, however in the joint released statement IGT & Scientific Games said there was always the possibility of reviewing it in the future.