License to run Brazil's instant lottery Lotex awarded for $200 million

SAO PAULO (Reuters) - The government on Tuesday awarded a license to operate Brazil’s Lotex instant lottery for a total aggregate amount of 818 million reais ($200 million), organizers of the bidding said.

The Consórcio Estrela Instantânea, the sole contender at the auction, placed the winning bid for the right to operate Lotex, the organizers said.

The consortium formed by UK-based International Game Technology IGT.N and U.S.-based Scientific Games International made an initial payment of 97 million reais for the right to operate Lotex.

The license runs for 15 years and will be fully paid for in seven annual installments. Shareholders will pay 17% of total lottery revenue to the Brazilian government.

IGT’s director in Brazil, Roberto Quattrini, said the potential for expansion of revenue of the instant lottery is big in Brazil, compared with the sales in Europe.

($1 = 4.0897 reais)

Reporting by Aluísio Alves; Writing by Ana Mano; editing by David Evans and DAvid Gregorio