IGT and Scientific Games Withdraw From Brazilian Lotex Concession

The popular gaming solution provider, International Gaming Technology (IGT), has withdrawn from Brazil's instant lottery concession. With Scientific Gaming, IGT was awarded the concession in 2019, subject to some conditions that must be met not later than 21st of September 2020. However, the two companies found it difficult to meet the conditions and requested an extension, which was denied. However, the denial of the extension is the primary reason the two companies are withdrawing from the contract.

According to the IGT and Scientific Games' joint statement; if the government of Brazil changes its position and grants the extension, then the two companies will also rethink their decision. They may even also consider continuing the process.

The reluctance of CAIXA Economica to execute the contract IGT and Scientific Games have with it is the major reason for the delay. This is according to the joint statement.

The Role of CAIXA

CAIXA is the largest lottery retailer operator network in the country, with about 1300 retailers. The retailer network has gone into a distribution agreement with IGT  and Scientific Gaming partnership. And the partners also believe it is crucial for their successful operation in Brazil. However, two months after the contract has been finalized, CAIXA has still not authorized its members to honor the agreement.

Apart from the CAIXA delay, the two companies also referred to the recently delivered court judgment. This gives the government of the Brazilian state the power to execute their state lottery. It thereby ends the monopoly that the federal government has been enjoying. Based on this judgment, Brazil's lottery business may not be as lucrative as it was when the concession was first awarded in October 2019.

Walter Bugno, the Executive Vice President, Business, and Strategic Initiative represented the International Gaming Technology. Scientific Games was represented by its president on Global Strategic Accounts, Mr. Michael Conforti.

About International Gaming Technology

IGT is a software and technology company known for producing gaming machines, and online casino content. They also provide sport betting solutions, and lottery solutions. The company has about 12000 workers and has a presence in over 100 countries across the globe. Its operational head office is in London, Uk, but it also has offices in Las Vegas, in the United States, Rome in Italy, and Providence in the Rode Island.

IGT has over 12000 employees. It also does business with many casinos, gaming, and lottery companies. The company is also committed to gambling research and practices that promote responsible gambling.

About Scientific Games

Scientific Games Corporation is a famous American company specializing in the provision of casino game. These include table games and instant lottery games. They also provide many other gambling services. The technology company has its head office in Las Vegas in Nevada, United States, but provides services for gambling companies worldwide.

Scientific Games has many subsidiary companies and over 10,000 staff. It also has a partnership with many top companies in the gambling industry.