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 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.
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.”
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 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.
