The Government of Brazil has announced this week its plans to privatise the current state-run lottery industry. According to Reuters, the Finance Minister Henrique Meirelles has revealed the government’s intentions to auction off the national lottery system before the end of the year.
Whilst gaming legislation talks have been put on pause, the Congress of Brazil is evaluating a privatisation operation of the state’s lottery market which is currently operated by Caixa Econômica Federal. Following the Latin American giant's political scandal, with the impeachment of President Dilma Rousseff for illegally manipulating government accounts, the move falls under a greater economic restructuring strategy. The country hopes to escape its political and social crisis by limiting government’s influence over businesses.
Although further details are still unknown, local media reports point out those political parties themselves could become lottery operators under the new legislation. By doing so, running gaming businesses would contribute to fund their campaigns. However, this decision may generate greater controversy.
Leaving difficult times behind, Brazil remains an attractive market for foreign investors. For instance, US casino operators Las Vegas Sands and Caesars Entertainment have confirmed their interesting in expanding to South American biggest country.