“We are at the moment of launching a new lottery. A rescue from the instant, which Brazilians popularly called ‘scratch card’. In addition to the lottery network, we will distribute the new modality on the Correios network”, said Carlos Vieira, president of Caixa, about the plans for the instant lottery.
He stated that he has no doubt that the launch process will be a success, both due to the capillarity of the lottery network and the Post Office branches.
Regarding sports betting, the bank's interest in entering this market is already clear. So much so that the CEF presented itself to the Ministry of Finance on the preliminary list created by the Ministry to assess the size of the market. Furthermore, Caixa has been under pressure from the lottery network to operate in the segment.
“I'll give you some information on how we can grow in this segment. Worldwide, participation is very significant in economies in relation to values. The current value of revenue in Brazil, dollarized, is US$ 3.5 billion, the same volume as a country that has 5% of Brazil's population, which is what Portugal does, while in France it collects four times more than Brazil in this segment”, he explained.
“We have to enter this market. Caixa has maintained the same level of revenue for our lotteries for some time, generating a reduction in revenue from our lottery operators. We have a whole expansion plan that starts with Lotex and we want to enter betting as a stimulus to this market”, he stated.
“The Brazilian market has to be at least the size of the French market, which is the same as that of Japan, Canada and a little larger than that of Australia at around US$ 9 to US$10 billion in revenue per year”.
“Look at the size of it… at least four times more than Brazil. In the case of Caixa there is another additional aspect, Caixa's lotteries, from a revenue point of view, 46% is distributed in the form of social benefits, be it in sports, health, education, we would be making a composition in the sense that this collection goes to society directly”, he highlighted.
The bank president recalled that “our lottery company (Loterias CAIXA) was in that group of companies to be privatized and left that context in January through a Decree, so it is re-established as an opportunity for doing business. Caixa already has, by order of the Ministry of Finance, the exclusivity for a period of 24 months to explore the scratch card modality in Brazil”.
On the program, Carlos Vieira made it clear that it was not possible for Loterias CAIXA to have a partner to operate sports betting. “Loterias CAIXA is 100% owned by Caixa. The initial idea for this integral subsidiary for this activity. There is no expectation over a time horizon that you will look for a partner for this company”, he said.
Source: GMB
