The public bank has decided it will only enter the market after the completion of regulations. The Ministry of Finance will finalize all the steps in defining the rules for gaming by the end of the year, with most of the regulations coming into effect in January 2025 — some of the ordinances will begin to take effect this week. The bank’s initial focus will be on sports betting.
The Caixa Loterias subsidiary was one of the 113 companies that applied to the Ministry of Finance for authorization to operate in the online gaming and betting market in the country. Starting from October 1st, only these companies will be able to legally continue operating in the country, but Caixa has decided to wait for the completion of the regulations and formal authorization before entering the market.
This subsidiary was created by the bank to manage lotteries, including the traditional Mega-Sena bets and other products.
To enter the betting business, Caixa Loterias will hold a bidding process to choose a partner who will own the core technology for the betting platform. This partner will provide the platform responsible for odds, real event outcomes (such as football matches), and other necessary features for offering bets.
Bets also in lotteries
Players place their bets, which are rewarded — if correct — according to odds. Bank executives explain that it is common in this market to have an operator behind the interface viewed by users. The bank also plans to allow players to place their bets not only online but also at fixed points in lottery outlets.
Caixa holds the monopoly on lottery games in the country, and in the first half of the year, it collected R$ 12.3 billion (US$ 2.26bn) from these games. In the same period last year, the revenue was R$ 10.34 billion (US$ 1.9bn).
Caixa expects that revenue from sports betting will initially reach around 50% of what Caixa Loterias generates from traditional games. With the maturity of the operation, bank executives expect this amount to grow. Therefore, following these estimates, the revenue would hover around R$ 12 billion per year.
These projections were made before the Central Bank released the first official report on this market last week. The Central Bank’s study, conducted at the request of Senator Omar Aziz (PSD-AM), revealed that between January and August of this year, monthly transfers via Pix to betting houses ranged between R$ 18 billion (US$ 3.30bn) and R$ 21 billion (US$ 3.85bn).
The Central Bank's report also showed that most bettors are between the ages of 20 and 30, although the average amount spent is higher among those over 50. Caixa expects that entering the sports betting market will attract a new audience. The typical lottery customer is over 45 years old. According to bank executives, there would be no competition between lotteries and sports betting, as they cater to different audiences.
Monitoring by CPF
Caixa also plans to implement measures to ensure what it considers responsibility towards bettors. The betting platform is expected to include safeguards and alerts for individuals who are spending excessively on games, along with guidance on expenses.
This week, President Lula is expected to announce actions aimed at preventing people from falling into debt and trying to protect the most vulnerable from gambling. Among the proposed measures is blocking the use of the Bolsa Família card for payments on these platforms.
In addition, one option under consideration is transferring the ownership of the benefit to another family member if the cardholder is using the money for gambling. According to the Minister of Social Development and Fight Against Hunger, Wellington Dias, the monitoring of bettors will be done through their CPF (Individual Taxpayer Registry).
"The rule will prevent payments or withdrawals using the Bolsa Família card. There will also be monitoring via CPF. After verifying the CPF linked to the benefit, if the funds were used improperly, we may change the beneficiary or suspend cash transfers, instead providing support with community kitchens or food baskets," the minister told O Globo.
According to experts familiar with the matter, blocking the debit function of the Bolsa Família card for certain channels like betting sites is the easiest measure to implement because it does not require approval from Congress. However, restricting program resources to basic food baskets, for example, would require legal changes as it alters the nature of the benefit.
The expert explains that measures like preventing the use of funds for gambling must consider legal aspects, as the rights of beneficiaries must be the same as those of other citizens. There cannot be any discrimination or criminalization, he stated.
Raspadinha returns
Caixa is also preparing to launch instant lottery tickets, the popular “raspadinha” (scratch card), in the middle of this month. It will be possible to manually scratch the ticket at lottery locations, as in the past, or virtually, using a mobile tool that simulates a finger scratching the surface. Tickets will cost between R$ 2.50 (US$ 0.45) and R$ 20 (US$ 3.70).
The prize will be proportional to the cost of the bet, ranging from R$ 2.50 (US$ 0.45) to R$ 2 million (US$ 370,000). By law, prizes above R$ 2,259 can only be redeemed at Caixa branches.
Caixa sold scratch-off tickets between the 1960s and 2015, when the betting model was suspended by order of the Office of the Comptroller General (CGU), which questioned the legality of how it was being conducted in the country. After a series of back-and-forths, the bank regained authorization to operate the scratch-off lottery.
Source: O Globo
