• A new state lottery, Banestes Loteria, is preparing to launch in the Brazilian state of Espírito Santo.
• The lottery is a subsidiary of the state-owned bank, Banestes, and is currently in the final stages of selecting a private sector partner to manage its operations and technology.
• The new entity is licensed to offer a wide range of products, including traditional lotteries, instant games, and fixed-odds sports betting.
• The launch is a significant development in the decentralisation of Brazil’s gambling market, which is seeing the emergence of powerful state-level lotteries alongside the new national online betting regime.
• The state of Espírito Santo will receive 11.5% of the net profit from the lottery’s operations.

The Brazilian state of Espírito Santo is on the brink of launching its own state lottery, Banestes Loteria, in a move that will see a state-owned bank enter the country’s rapidly evolving gambling market. The new entity is in the final stages of a tender process to select a private partner to provide the operational and technological backbone for the new venture.

The launch is a major milestone in the broader liberalisation and decentralisation of gambling in Brazil, creating new opportunities for suppliers and a new set of state-backed competitors for national licensees.

Seeking an International Partner

The success of Banestes Loteria will hinge on the selection of its private sector partner. Three consortiums submitted proposals earlier this year to manage the lottery, but the decision was postponed to allow for a more detailed analysis of the bids.

Banestes president Amarildo Casagrande has made it clear that the state is looking for a high-calibre partner. “We are conducting a thorough selection process. The partner must have international experience and all the required certifications,” he said. “The expectation is to begin operations this year.”

A Broad Product Portfolio, Including Sports Betting

The decree authorising the new lottery, signed by Governor Renato Casagrande in January, grants Banestes Loteria a licence to operate a comprehensive suite of six product types. These include traditional passive and numerical lotteries, instant games, and, most significantly for the wider iGaming industry, sports predictions and fixed-odds betting.

The inclusion of sports betting positions the new state lottery as a direct competitor to the operators who are currently seeking licences under the new federal online sports betting regime.

The Evolving Brazilian Landscape

The creation of Banestes Loteria is a key example of the complex, dual-track regulatory landscape that is emerging in Brazil. While the federal government has been focused on creating a national licensing system for sports betting, a parallel process has seen individual states, empowered by a Supreme Court ruling, move to create their own powerful, state-level lottery and betting operations.

For international operators and suppliers, this creates a more fragmented but potentially richer market, with opportunities at both the national and state levels. The launch of Banestes Loteria will be a closely watched test case for how these new, state-backed entities will compete and coexist with the new wave of federally licensed operators.