On Monday (15) this week, the first part of the Council meeting on the subject ended without conclusion, and yesterday (16) there was also a disruption in the proceedings. According to Valor's findings, the meeting was tumultuous, and the final decision was very tight. There were reportedly four votes in favor, three against, and one abstention.
Unions are opposed to the measure, arguing that it paves the way for a possible privatization of the lotteries in the future. "If it's so good for everyone, why not have a broader and more open debate?" questions a source familiar with the discussions.
The National Federation of Caixa Employees Associations (Fenae) was one of the entities that spoke out against the transfer of the lotteries.
"By transferring operations to a subsidiary, the government opens the door to privatization without the need for approval from Congress. What is at stake, therefore, is the fate of these resources. If privatized, this billion-dollar sum, which is currently being used for the benefit of society, will be diverted into the pockets of profit-hungry entrepreneurs," the entity says.
The concern of the unions, although they point to the issue of raising funds for social investment, is about jobs. Considering the large number of employees often exceeding the bank's needs in most areas of Caixa Econômica Federal, the concern about the current status quo has outweighed the profitability and modernization aspect of the lottery business in Brazil.
Loterias CAIXA was created in 2016 with the initial objective of exploiting the public service of Exclusive Instant Lottery (Lotex). According to the bank, with the approval of new types of games, such as Bets (as sports betting operators are called) or virtual games, and the understanding of the Federal Supreme Court (STF) regarding the possibility of regional exploitation of lotteries by the States, a new market and competitive context has been created for lotteries in Brazil.
Still, Caixa denies any intention of privatizing the lotteries. "The exploitation of lotteries constitutes a public service and, at the federal level, is permitted by the Federal Constitution only to the Union, which has assigned the execution of lottery modalities to Caixa. The migration of lottery operations to the subsidiary Loterias CAIXA only becomes possible because it is 100% public, fully controlled by the bank."
The even greater interest in making the business more profitable is due, among other things, to the growth of the sports betting and online gaming market. CEF has already expressed interest in entering this sector, and even the lottery network has been making efforts to have a stake in the new business.
Source: GMB / Valor
