It was announced today that two powerhouses of the international gaming industry, IGT and Scientific Games, have partnered with local entity SAGA Consultoria e Representações Comerciais e Empresariais, forming a consortium set to make considerable waves in Brazil’s lottery sector.
A Winning Ticket in Brazil
In a daring and enterprising venture, the consortium has successfully secured a 20-year concession contract from the Minas Gerais State Lottery, with the potential for a subsequent 20-year renewal.
This agreement permits the consortium exclusive rights to operate instant and passive lottery games within Minas Gerais, a southeastern state of Brazil, home to 21 million people where lottery games remain the sole legal form of gambling. Currently, the state only provides Keno and a national draw game.
IGT’s Chief Operating Officer, Global Lottery, Jay Gendron, stated, “This agreement enables us to expand IGT’s global leadership in lottery and build upon our operational expertise while creating additional opportunities in Brazil through the launch of printed instant tickets and related services.”
The commitment of IGT and Scientific Games to deliver high-quality and engaging gaming experiences is well-documented, and this partnership presents a fresh opportunity to provide these experiences to a new market.
In addition to instant games, the consortium will offer a supporting instant ticket system and passive lottery games. IGT and Scientific Games will spearhead the consortium’s operation, jointly taking responsibility for printed instant games planning and production, while Scientific Games will supply the necessary software and management system.
The contract comes into effect on June 9, 2023, with the consortium expecting to launch the instant games by the end of the year.
Implications for the iGaming Industry
This ambitious partnership and acquisition of an exclusive lottery contract in Brazil could have far-reaching effects on the iGaming industry:
- Diversification and Growth: The venture is a clear indicator of the global iGaming industry’s eagerness to diversify and grow its operations. By accessing previously untapped markets, industry giants like IGT and Scientific Games will be primed for significant growth, particularly in regions where lottery games are the only legal form of gambling.
- Rise in Consortium Models: The partnership between IGT, Scientific Games, and SAGA may inspire a rise in consortium models within the industry. By pooling resources and expertise, gaming organisations can better navigate regulatory complexities and competitive landscapes.
- Player Engagement: With a wealth of content and substantial investment in innovation, this venture has the potential to significantly enhance player engagement. The addition of instant games to the current offering will provide players with fresh and exciting experiences, driving increased participation in the lottery market.