However, the project has become a target for opposition lawmakers. The guidance from the Presidential Secretariat for Social Communication (Secom) is that the bank should prioritize other initiatives, such as the housing renovation program. With a budget of R$ 40 billion (US$7.45bn), this program has strong electoral appeal.
Another measure being prepared is the creation of a credit line for delivery drivers (motoboys), being designed together with the Presidential Palace and the Ministry of Labor. “The Bet is not a priority right now — there are other deliverables, including measures focused on the environmental area,” said a government official.
The bank plans to announce new actions during the United Nations Climate Change Conference 2025 (COP30), which will take place this month in Belém.
Lula’s irritation
During his trip to Asia at the end of October, President Lula became irritated with opposition criticism of the government and said he would demand explanations from the state-owned bank. Upon returning to Brazil, Lula spoke with Caixa’s president, Carlos Vieira. When contacted, Caixa’s press office stated that the bank would not comment on the matter.
Nevertheless, Caixa continues to defend its ‘Bet’ project behind the scenes. One of its main arguments is that a significant portion of bets are currently placed on foreign websites, which operate without authorization and do not pay taxes in Brazil.
Caixa’s technical team says the project aims to allow the bank to enter this market. The proposal has already been approved by the Ministry of Finance, though that approval was limited to formal and technical aspects, without addressing the political implications.
The bank also argues that lottery revenue has fallen by 50% since the rise of ‘Bets’. As a result, the government itself has lost revenue, since 48% of gross lottery proceeds are transferred to public coffers.
Caixa’s plan dates back to 2024
Caixa’s original intention was to launch the ‘Bet’ in the first half of 2024, but the plan was postponed pending the Ministry of Finance’s regulatory framework — aimed at curbing illegal ‘Bets’ and ensuring a degree of protection for bettors.
In an interview with O Globo published on October 16, Caixa’s president confirmed the plan and expressed his expectation to launch it by the end of November.
“It’s a new market, and Caixa is a new entrant. We want to become a significant player,” he said when asked about competition between online ‘Bets’ and the bank’s lottery products.
President Lula has repeatedly emphasized the need to increase taxes on ‘Bets’, and the government is currently working in Congress to raise the taxation of ‘Bets’ and fintech companies.
Source: O Globo
