A joint venture from global lottery and gaming solutions firms, Scientific Games Corporation and International Game Technology (IGT), has reportedly been awarded with the 15-year contract to provide Brazilians with a range of instant-win products such as scratchcards.

According to a Wednesday report from SBCNews, the Consorcio Estrela Instantanea endeavor was the only entity to have bid for the right to replace CaixaBank SA as the sole provider of instant-win lottery products in Brazil with the entity now expected to begin offering such games from the middle of next year.

Lucrative understanding:

SBCNews reported that the contract was award on Tuesday by Brazil’s National Bank for Economic and Social Development (BNDES) following seven earlier failed attempts after Scientific Games Corporation and IGT agreed to pay the government approximately $203 million over eight installments. The initial payment will purportedly be worth about $24 million while the pair also acquiesced to a demand that Consorcio Estrela Instantanea hand over 16.7% of any revenues from the sale of instant-win products.

Profitable possibilities:

Brazil has a population of over 210 million people and reportedly anticipates earning around $4.7 billion over the length of the 15-year scratchcard deal while Consorcio Estrela Instantanea is to keep 18.3% of any revenues with the rest being paid to players in the form of prizes.

Monopoly erased:

CaixaBank SA has operated all instant-win games in Brazil since the 1960s but the passage of new federal legislation in late-November reportedly meant that the bank was required to offload this duty to a private enterprise. IGT and Scientific Games Corporation purportedly issued a joint statement in which they described the new contract as ‘an important step towards the privatization of lottery instant games in Brazil’, which has the world’s eighth-largest economy via a gross domestic product of over $1.8 trillion.

Reportedly read the joint statement…

“This business partnership will benefit the people and government of Brazil and brings together the vast experience and market leadership of global leaders in the instant-game market to help position [us] for success.”