Igt and brazilian lottery computer games crash
IGT and Scientific Games are pressing for Brazil's instant lotery company to reach a hurdle as local partner meets deadline. The corporations are open to re-engaging with the project while new legal issues in Brazil will entail further re-evaluation of all actions.
Brazil's Drive Stops Instant Lottery As A Local Affiliate
Brazil is now between legalizing gambling and subtly putting barriers on the way to development. A much awaited deal between international game technology and science games between International Game Technology and Scientific Games fell through on Tuesday for Brazil's instant lottery scratch card company because the merchant who won the offer for delivery and local assistance had failed to produce a contract by the deadline set.
The privatization of Loteria Exclusiva Instantânea or Lotex was a necessary move for both firms to develop their market presence and start a lottery business. In October 2019 IGT and SG obtained a shared concession and had to finalize the deal with CAIXA Econômica.
The companies got in contact with caixa, which is brazil's biggest lottery retailer network, in the seven months between october and now, and signed a deal successfully two months ago.
However, CAIXA has refused to sanction its implementation by the concession date, for unclear reasons. SG and IGTt tried to postpone the concession date but the proposal fell through and the firms did not transfer the project to the next level without a delivery network.
Changes In Brazilian Lottery's Ethical Structure
Commenting on these trends, IGT EVP for New Business and Strategic Initiatives Walter Bugno and SG President of Global Strategic Accounts Michael Conforti noted that the Brazilian Supreme Court declares the government's lottery monopoly illegal as of September 30th, 2020.
Lotteries is a public activity, and thus not immune to central government control, according to the Supreme Court.
Brazil's 26 states will also be looking actively to create and build their own state systems for lotery solutions. Mr Conforti and Mr Bugno have argued that the decision means that SG and IGT would have to re-evaluate "the commercial case of introducing a brazilian model of lotery operations."
However, IGT and SG could be open to re-engaging with the new mechanism if the government wishes to postpone the deadline and reconsider the agreement. Meanwhile, Brazilian pPresident Jair Bolsonaro has backed privatizing the country's sports betting.
