Brazilian financial services company Caixa Econômica Federal has unveiled its plans to enter the country’s online betting market, having already applied for a federal license. The launch of its own sports betting and online gaming platform is scheduled for April 2025.
The development comes amid the growing pace of betting in the country, as well as Brazil’s current focus on regulation. The financial institution chose to wait for complete regulation before moving to operate in the sector.
The Ministry of Treasury expects to finalize the standards by the end of the year, with the main rules coming into force in January 2025. Caixa’s initial focus will be on sports betting, especially on football events.
Caixa Loterias was one of 113 companies that requested a license from the Ministry of Finance. These companies will be able to operate legally in Brazil from October 1st.
To advance its operations in betting, Caixa Loterias plans to select a technological partner through a competition.
The partner will also help in developing the betting platform. Additionally, it will provide the essential tools to calculate odds, manage bets, and present event results.
In addition to online betting, the financial institution also intends to allow players to place bets at physical points in lottery outlets. This traditional model will be added to the new modality, aiming to increase convenience for bettors.
Caixa says that with the explosion of lottery games, it accumulated revenue of R$12.3 billion ($2.2 billion) in the first half of 2024. In comparison, in the same period in 2022, revenue amounted to R$10.34 billion ($1.8 billion).
Caixa directors expect revenue from new online bets to reach around 50% of the total collected by traditional lotteries. As a result, annual revenues are expected to be around R$12 billion ($2.1 billion). Caixa’s objectives are to diversify its users’ income sources and to attract a new audience to the bank.
Caixa also believes that the launch of a new online betting service could attract a younger audience. For the institution, the lottery tends to attract a consumer profile over 45 years old, which minimizes competition between the two segments.
In contrast, a recent study by the Central Bank showed that the majority of online bettors are between 20 and 30 years old. However, those over 50 tend to spend more. This data highlights changes in player profiles and consumption trends.
Caixa said it will implement control measures on its betting platforms, such as alerts for users who spend too much on games, as well as guidance on expenses. This commitment comes as the federal government is expected to announce actions to avoid debt for the most vulnerable people this week. One of the measures that could be taken is to block the use of the Bolsa Família card on betting platforms.
Monitoring of bettors’ expenses will be carried out by the CPF, with the aim of ensuring responsibility for the use of resources. According to the Minister of Social Development and Combating Hunger, Wellington Dias, the measures include the possibility of transferring ownership of the benefit if the person responsible uses the funds for games.
Original article: https://www.yogonet.com/international/noticias/2024/10/01/80521-caixa-seeking-to-introduce-online-betting-operation-in-brazil-from-april-2025
