2020_11_betinvest.gif
2020_11_betinvest.gif
2020_11_betinvest.gif
CLOSE
× Gambling News In-Depth iGaming Calendar Connections GI Friday Trafficology GI Magazine GGA 2020 AffiliateCon
NEWS 12 September 2017

Brazil set date and price for lottery auction

By Harrison Sayers
The Brazilian government will be selling off one of its instant lottery units in an attempt to reduce government economic intervention and the country's budget deficit. The sale of the concession will raise an estimated REAL 2b (£482m).

Brazil is currently in a political period of austerity focusing on a large budget deficit exacerbated by the government’s decisions to hold both the Olympics and FIFA world cup tournament which both required large scale government investment.

Bank development firm BNDES has been given control over the sale. They will be organising an auction for Loteria Instantanea Exclusiva (LOTEX) which has been operated by the Brazilian state authorities. Although discussions surrounding the sale of LOTEX have occurred frequently in recent years, it wasn’t until last month that Michel Temer made the plans official.

The sale forecast is set at double the minimum auction price, with the hope that the money raised will go directly into the government’s attempts to reduce the current REAL 159bn deficit.

However, the auction, which isn’t scheduled to take place until December, according to Finance Ministry secretary Mansuetto Almeida, will not be included in the country's budget for the 2017 budget.

Almeida tweeted: “If the proceeds come in 2017, great. But those resources are not in this year’s budget”.

The lateness of the sale is important as it proves the decision is not fully driven by a need to raise instant funds and is somewhat ideologically driven as Brazilians look to steer their government away from large scale economic intervention.

The sale represents a great opportunity for foreign investors who still view Brazil as huge emerging market. The winner of the auction will inherit one of the only current legal forms of gambling in a nation of 207 million people.
RELATED TAGS: Financial | Legal & Regulatory | Industry
2020_7_fsi.gif
GI FRIDAY: WEEKLY NEWSLETTER
THE GI HUDDLE PODCAST
NEW! #006 - LISTEN NOW
Gaming Industry Conferences (22:37)
#005 - LISTEN NOW
The role of gambling media (27:11)
#004 - LISTEN NOW
What is the role of a Gambling regulator? (29:09)
#003
The Future of Gambling Sponsorship in Sport (30:50)
MUST READ
IN-DEPTH 16 March 2020
Is there an ideal RTP rate?
READ MORE
PREMIUM CONNECTIONS
Payments
Zimpler
VIEW PROFILE
Systems and Software
Newgioco Group
VIEW PROFILE
Systems and Software
Efbet
VIEW PROFILE
Systems and Software
NSoft
VIEW PROFILE
Systems and Software
BBIN
VIEW PROFILE
Legal and Jurisdictions
Digital Isle of Man
VIEW PROFILE
Affiliate
1xPartners
VIEW PROFILE
PR and Marketing
ActiveWins
VIEW PROFILE
Industry Awards
Global Gaming Awards
VIEW PROFILE
Systems and Software
BetConstruct
VIEW PROFILE