GMB - You recently represented Caixa and the Brazilian lotteries at the WLS (World Lottery Organization) meeting. In this event, what was your impression of how Brazil's lotteries are viewed internationally?
Gilson Braga - Not only that. In all events we participate in World-wide Organization of Lotteries, Cibelae; the Caixa and the federal lotteries of Brazil are always in demand and continues to enjoy worldwide prestige. All players and lotteries like to interact with us, to know what we are doing within our processes and especially what we are imagining of new projects for the future. We continue in this line, always much sought after and much requested in all the events that we participate.
During that same event, you received a tribute and were chosen for an important position within the WLA. What is your feeling at this so important moment?
It is a feeling of recognition of the work that we have been doing in Caixa, within CIBELAE, with the World Lottery Organization and even with other world lotteries. We always have a lot of contacts, we exchange a lot of ideas, we pass some information about what we have in Brazil, what is going on internally regarding regulation of games and to know what is being done outside.
So this recognition and nomination for the WLA Executive Committee over the next two years is the result of this work and our recognition of the world lottery market. I'll be occupying, I've been working from 2015 to 2016, and I'm returning to the committee now. It is the opportunity for us to show even more the work that Caixa has been doing with the lotteries in Brazil and also to be taking to the world what is happening here in our market.
Can you tell us exactly what is your role as a member of the WLA Committee?
The World Lottery Organization takes care of the interests, so to speak, of the credibility and security issue of lotteries at state level on world territory; and the committee is the organization that makes all the providers that participate in this association be interacting, exchanging ideas, participating in events, seminars on all continents and, especially, taking care of the business. That's the most important. When we hear about sports betting, the care we must take with the problem of manipulating results, preventing money laundering, combating illegal gambling, whether physical or online, then the committee has this, as the largest manager of the WLA, take care of all this organization worldwide with all lotteries on five continents.
The LOTEX process was further delayed and its auction rescheduled for next February. Even without being able to enter as an operator in this dispute, how does Caixa evaluate this postponement and in what role does it intend to work with LOTEX in the future?
The Caixa is impeded according to the edict, by decision of the Ministry of Finance, and it is our regular and we accompany it. We worked in the past to participate, but we were prevented, we accepted the recommendation of the government and we worked within what was possible in the case would be a work to compose a possible operational agreement for the release of the network for the sale of LOTEX in the future. This is what we are working on and if we are looking for the eventual winner, Caixa will be available for negotiation.
In the matter of postponement we have information. I believe that the Ministry of Finance and SEFEL should be the most appropriate to talk about it and have more information than we do to explain the reason for that decision.
Were you satisfied with the final result of the text of PM 846 approved by Congress?
We had in 841 a work done with the Ministry of Finance and SEFEL to adjust some of our lottery payouts. Our payouts are very low compared to the world average and a realignment to around 50%, which would be the lottery prognosis, would be very beneficial to the product. You could have the same revenue generation, or even more, with a higher payout because that's what the punter really wants; receive and win prizes. So that measure had this bias of being able to provide a greater competition of the federal lotteries, mainly, against the lotteries that are in the market.
With the decision of the Congress, together with the Ministry of Finance, for approval; what we're going to do is keep working. Caixa is strong, has a respected brand, a very competent marketing network, an already a strong betting site in operation and we will, with what we have, try to develop more, work more, bring products that are within our reach to our customers.
In the first conversation we had some time ago, you commented that it is very difficult to create new lotteries in Brazil because a law is required for each product. Do you expect that, within the new PM, this problem would be solved?
It was our request. During the congressional hearing on PM 846, I quoted this information that, in our view, the process is very time consuming if you depend on each product for passage of a specific bill. If you could have at the Ministry of Finance, at the lottery regulator, the prerogative that he; by decree or by ordinances, could allow the creation of other products obeying, logically, a superior legal determination would be very advantageous and much more agile so that we can compete with the market that is much more agile, especially the private one.
Regarding to sports betting, what is Caixa's expectation for the regulation model that will be implemented? Do you believe that the bank may own the monopoly or prefer to see it as a competitor of a license to operate in the country?
We still do not have the information on how it will actually be. We have the approval of PM 846 (now sanctioned by the president) that allows the creation of sports betting and now we need to understand how the regulation will be. So anything we say now is mere assumption. I prefer to wait for the regulations of the Ministry of Finance and verify, from this legal provision, how Caixa can operate in this sports betting market.
Does Caixa have any suggestions to make to the regulator regarding sports betting?
The bank has worked with the Ministry in other opportunities in some models, even because we make several visits in partnership with lotteries and countries where sports betting is already regulated and we always exchange ideas. But, I would rather let the Ministry of Finance, in its regulatory position, be able to work this in a better way for the country and we, Caixa, before the regulations, we will certainly see how we can work in this market as well.
Starting in January, Brazil will have a new government led by Jair Bolsonaro. How does Caixa evaluate the transition that is happening in the Executive and what are the expectations for the work of the administration that will take over the country? Have you heard of any changes in the bank?
On the issue of transition I have no power or mandate to speak of it; this is considered by the presidency body and top management of Caixa and we, in the area of products, will act and be always ready, regardless of the governments that enter or leave. Caixa's lottery area is prepared, with a very competent team, to that we can take care of the administration of lotteries to the country. This is our role and for that we act.
And what is your personal perspective for the mandate of Jair Bolsonaro?
In this position we can not talk about in a personal level. In the public office that we occupy and with all the caution that we must have in this function, we do not have to pronounce on this question. I am an employee of the Caixa, currently working in the management of federal lotteries, and I play my role there according to what we have today, regardless of the president or the parties that are in charge of the government. Our position as a civil servant in a strong institution such as Caixa is to be acting in the best possible way, always complying with the legal regulations we have for our mandate.
Source: Exclusivo GMB
