For CADE, intermediation is a service provided to bettors. Instead of going directly to a lottery outlet, they access a website that registers their bet with a Caixa-accredited agency. It also typically indicates which numbers are most likely to be drawn.
When consulted, the International Gaming Association, which represents large lottery intermediation companies, said that Caixa is trying at all costs to block the growth of this market segment.
"What we see in practice is Caixa repeatedly trying to exceed the limits of its legal monopoly, even seeking a monopoly on pools, a cultural expression of Brazilian culture," says Ana Claro Barros, the association's legal director.
Initially, the courts were divided on the case. Mega Loterias, for example, had to remove the games operated by Caixa from its website, but reversed the decision about 20 days ago after an appeal. There are also four other cases awaiting trial in the second instance.
This war began just over three years ago and the intermediaries have received favorable opinions from the Ministry of Finance and CADE.
Halfway
The central controversy concerns the legality of the lottery brokerage service. These websites do not operate the lottery itself, an exclusive business of Caixa. What they do is, on behalf of bettors, register the games at lottery outlets licensed by Caixa.
These brokerages (or "couriers") argue that the service increases the convenience of bettors, since the companies organize the games, verify results, and offer ancillary services, such as 'megabolões' and the use of algorithms to choose the most likely numbers.
In court, lower court decisions differ, although with a greater number of cases decided in favor of Caixa, with orders to withdraw the offer of lottery games from the websites that provide this brokerage service. The bank claims that the commercial exploitation of its games is illegal.
CADE, however, has interpreted the situation differently. In February of this year, after nearly two years of investigation, the agency's general superintendence decided to open administrative proceedings against Caixa and the Brazilian Federation of Lottery Companies.
According to the antitrust agency, Caixa is abusing its dominant position, allegedly attempting to prevent new companies from entering the market.
One of the points cited in CADE's decision is Caixa's offensive against lottery outlets, also deregistering units that accept bet registrations from intermediary companies.
In his ruling, CADE's general superintendent, Alexandre Barreto, said that "the mere activity of intermediating lottery games should not be understood as an illicit activity."
In response to a question from CADE at the time, the Ministry of Finance's Secretariat of Prizes and Betting considered that, although Caixa is exclusively responsible for operating lottery services, intermediation through third-party platforms "is not exploitation."
"There is no regulation or express prohibition on the intermediation activity performed by platforms in the capture of bets," the secretariat's opinion states.
When contacted, Caixa said in a statement that it does not comment on ongoing administrative or judicial proceedings.
Source: Painel S.A. – Folha de São Paulo
