Scratchcard can be operated by Caixa on a transitional basis
The Exclusive Instant Lottery (Lotex), known as a scratchcard, which since 2018 has been operated by means of a concession, may once again be operated by Caixa Econômica Federal.
Decree released this Thursday, 31, in the Official Union Gazette, makes the legislation more flexible.
According to the new rules, which come into force on September 10, Caixa will be able to directly explore the service provided that the Ministry of Finance authorizes, in transitory cases, the change of operator, until the bidding process is concluded.
The public bank will only be able to operate for a determined period of time and will stop performing the service six months after the communication, made by the Ministry of Finance, that another operator has been authorized to assume the concession, in a bidding process.
The form of income distribution will remain the same:
- 0.4% for social security;
- 13% for the National Public Security Fund;
- 0.9% for the Ministry of Sports;
- 0.9% for the National Culture Fund;
- 1.5% for football institutions for the use of shields and brands;
- 18.3% for the Lotex operating agent,
- 65% for the payment of prizes and income tax on the prize.
Prizes not withdrawn will be returned to the Union, in the single account of the National Treasury.
Scratchcard has been out of operation in Brazil since 2015
Lotex has been out of operation in Brazil since 2015, when it was discontinued by determination of the Comptroller General of the Union, who contested the legality of the way it was operated in the country.
In 2018, new legislation resumed the modality in the form of a concession, through a bidding process.
Two auctions were held without attracting those interested in operating the Scratchcard, in the format proposed by the federal government at the time.
The requirements were made more flexible and, in 2019, the companies International Game Technology (IGT) and Scientific Games (SG), in the form of a consortium, won the competition for the first concession held in the country.
The group projected the start of operations for the year 2020, but withdrew from the business after considering that the service would only be viable through a distribution contract with Caixa, which did not come to fruition.
At the time, the consortium published a note in which it informed that Caixa’s network is essential for the successful launch of the instant ticket business in Brazil and, without it, it would not be possible to continue with the service.
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