After Vieira’s declaration that the bank could generate between R$ 2 billion and R$ 2.5 billion (US$370m and US$463m) with its own ‘Bet’, the Lula administration has faced criticism from opposition lawmakers, who see the move as inconsistent with the government’s discourse against online betting and gambling.
Caixa received its operating license from the Secretariat of Prizes and Betting (SPA) in late July, authorizing the use of three brands — betcaixa.bet.br, megabet.bet, and ‘XBET CAIXA’.
Lula has repeatedly emphasized the need to increase the tax rate on sports betting operators and has expressed frustration over the expiration of the Provisional Measure that would have raised the direct tax on betting activity from 12% to 18% without being voted on by Congress.
The bank has acknowledged that lottery revenues have declined since the official launch of Brazil’s regulated betting and online gaming market, and believes its expertise and extensive retail lottery network could help drive the recovery of Caixa’s lottery division.
According to Carlos Vieira, the initiative marks a strategic step for the institution to diversify its revenue streams. Caixa estimates that the new operation could generate R$ 2 billion to R$ 2.5 billion (US$370m and US$463m) in revenue by 2026.
The launch of the ‘Bet’ platform will represent a major milestone for the Brazilian betting market, especially with the entry of a federal state-owned bank with Caixa’s scale and reputation. This move is expected to reinforce the legitimacy of the regulated market and could alter the competitive balance among private operators.
Caixa is already in advanced stages of preparing its network of nearly 15,000 lottery outlets across Brazil to offer sports betting.
“People tend to play more when jackpots roll over, and we didn’t have major accumulated prizes early this year. As for the ‘Bet’, we’re preparing to launch it by the end of November. It’s a new market, and Caixa is a newcomer. We want to be an important player. Our revenue estimate is between R$ 2 billion and R$ 2.5 billion for next year,” said Vieira in a recent interview with O Globo.
Caixa has signed a contract with Playtech, a global leader in gaming technology, which will serve as the turnkey supplier of its award-winning platform. In a recent meeting to present company results, Playtech CEO Mor Weizer confirmed that the company had reached an agreement with a major Brazilian operator, without naming Caixa directly.
“I can’t name them yet, but we are in advanced discussions with what we believe will become one of the largest operators in Brazil. They already have market access and a strong presence. They’re not yet active in online betting and gaming, but this represents a very significant opportunity for Playtech.”
The agreement could become a complication if the government decides to cancel Caixa’s entry into the betting market, since the contract signed late last year reportedly includes a multi-million termination clause.
This week will be decisive for the outcome of the issue, as President Lula has stated he will meet with Carlos Vieira to discuss the matter.
Source: GMB
