The Brazilian federal state-owned bank Caixa Econômica Federal announced that it will officially enter the regulated gambling market in November 2025, operating fixed-odds betting through its subsidiary Caixa Loterias Ltda with three brands, directly competing with private operators. Caixa President Carlos Vieira confirmed this news, expecting the new platform to generate revenue of 2 to 2.5 billion Brazilian reais in its first year of operation. This move is part of Caixa's revenue diversification strategy, marking the bank's first foray into sports betting and online gaming while offering traditional lottery products. The plan responds to President Lula's call to reconnect with Brazil's middle class and expand digital participation. At the time of the platform's launch, the Brazilian Congress had just abandoned plans to raise the gambling tax rate from 12% to 18%.
Platform Launch and Strategic Goals
The Brazilian state-owned bank Caixa Econômica Federal will officially launch its gambling platform in November 2025, entering the regulated gambling market. This move is an important part of the bank's revenue diversification strategy, aimed at directly competing with private operators.
The platform will be operated through its subsidiary Caixa Loterias Ltda, marking the bank's first venture outside traditional lottery business into sports betting and online gaming services.
Expected Revenue and Operational Planning
Caixa President Carlos Vieira expects the new gambling platform to generate revenue of 2 to 2.5 billion Brazilian reais in its first year of operation. This forecast is based on market analysis and platform operational plans, reflecting the bank's optimistic outlook on business prospects.
The platform will operate fixed-odds betting with three brands, covering a variety of gambling product types.
Project Background and Authorization
The project advanced after Caixa Loterias Ltda obtained authorization to operate fixed-odds betting. Obtaining authorization allows the public bank to offer both traditional lottery products and sports betting and online gaming services.
This move represents an important expansion of Caixa's business scope, developing from traditional banking and lottery services to diversified gambling operations.
Policy Background and Presidential Call
The platform launch responds to President Lula da Silva's call for Caixa to reconnect with Brazil's middle class and expand digital participation. The plan aligns with the government's policy direction of promoting digital transformation and service expansion in public institutions.
The president supports public institutions' participation in the digital economy, providing citizens with more diversified service options.
Market Competition and Industry Status
Vieira acknowledges that with the rapid growth of private gambling operators since the regulatory framework took effect in 2023, Caixa's traditional lottery revenue is under pressure. Recent studies show that the market share of illegal operators in Brazil still exceeds that of regulated operators.
As a new entrant into the market, Caixa hopes to become a significant player and change the market competition landscape.
Illegal Market Challenges and Regulatory Responses
The Brazilian gambling market faces challenges from a large share of illegal operators, with recent studies showing that the illegal market share exceeds that of regulated operators. This situation has prompted regulatory authorities to strengthen enforcement and promote market standardization.
As a state-owned institution entering the market, Caixa is expected to enhance the market share and influence of the regulated sector.
Tax Rate Policy and Legislative Environment
At the time of the platform's launch, the Brazilian Congress had just abandoned plans to raise the gambling industry tax rate from 12% to 18%. Finance Minister Fernando Haddad called the tax increase proposal "fair but politically sensitive."
Maintaining a 12% tax rate provides a relatively favorable fiscal environment for the new platform's operation.
Traditional Business and New Growth Points
Caixa's traditional lottery business faces competitive pressure from private gambling operators. The new gambling platform, as part of the revenue diversification strategy, aims to create new growth points to reduce dependence on traditional business.
The bank hopes to alleviate the pressure on traditional revenue sources through new business.
Digitalization and Customer Connection
The new platform is a key component of Caixa's strategy to expand digital participation. By offering online gambling services, the bank hopes to strengthen its digital connection with Brazil's middle class, adapting to changes in consumer behavior.
Expanding digital services helps enhance the bank's competitiveness and relevance in the digital age.
Development Prospects and Industry Impact
Caixa's entry into the gambling market may change the competitive landscape of the Brazilian gambling industry. The participation of state institutions may accelerate the process of market standardization, promoting the transformation of illegal operators into the regulated system.
This move may prompt other public institutions to consider similar business diversification strategies.
