Caixa submitted its licence application on 20 August, a day before the initial 90-day window of preference shut. By applying during that timespan, Caixa, like other operators who filed in that window, is guaranteed its request will be processed by 1 January 2025. That is the expected launch date of the legal betting market in Brazil.
Brazil’s Secretariat of Prizes and Betting (SPA) got 113 applications during the priority window.
If the application is successful, Caixa, a Brazilian bank which has a monopoly on lottery, will be able to offer sports betting to players in Brazil. The market is expected to be a highly lucrative.
A study by the International Betting Integrity Association (IBIA) predicted sports betting turnover will reach $34bn (£26.8bn/€31.1bn) by 2028. Of that, onshore gross win is expected to be $2.8bn.
It’s a growing market, and Vieira said Caixa plans on being at the heart of it.
“The Brazilian market tends to grow in this segment and Caixa wants to be present in this growth,” Vieira said during the company’s Q2 results presentation.
“There are different initiatives that have been built in this aspect, and Caixa is going to be one of the major players in the segment.”
Caixa’s social responsibility
It’s certainly not been a smooth journey for Brazil on its way to a legal betting market. The process has been plagued by long delays and opposition.
Some of that opposition was for religious reasons from the country’s sizeable Evangelical movement. There is also concern around fears of gambling addiction levels rising.
However, Vieira is confident Caixa will effectively undertake the social responsibility aspects of its betting offering as a state-owned company.
“Caixa is 100% a governmental company and our main shareholder is the Brazilian society,” Vieira added. “So what we do in terms of results generation, part of it goes back to society by means of the actions we develop.”
Will betting cut into Caixa’s lottery revenues?
Having expanded into the world of betting, Caixa could potentially be running the risk of cannibalising its existing lottery offering.
However, Vieira has faith that won’t be the case. He said the company is aiming for betting to be responsible for half of the revenue it makes from lottery.
“[Bets and lotteries] are not competitive markets,” Vieira explained. “We are now operating in a new gaming and betting market.
“Speaking of strategy, we know that this is a very large market and that regulation will bring more formality to the market.”
Original article: https://igamingbusiness.com/sports-betting/caixa-brazil-betting-market/
