Caixa Econômica Federal said it expects to generate revenue of R$7 billion ($1.2 billion) next year from online gaming. The forecast follows Caixa’s announcement earlier this year that it would be entering Brazil’s regulated sports betting and iCasino market, set to go live in January.
Caixa had initially assessed that it would not need to compete with this sector, given that the lottery already has a captive audience in Brazil. However, upon seeing the lucrative potential of the sports betting vertical, valued at an estimated R$19 billion ($3.2 billion), the bank revised its strategy and plans to introduce its own platform, which it projects to launch in H1 2025.
Caixa‘s management said that the initial focus will be on sports betting, as per an iGaming Brazil report. These offerings will be gradually expanded as preliminary testing demonstrates viability.
The expectation is that the market will boom starting in January, with the planned regulation of online games by the government. The bank predicts that regulation will drive consolidation in the sector, along with a more competitive environment as a result of larger groups buying smaller companies or entering into strategic partnerships.
This new market phase is expected to enable Brazil to increase its revenue from betting, bringing it closer to the level of activity in countries such as Australia and Canada, where the sector generates around $5.1 billion per year.
Caixa’s launch in the online vertical is scheduled for the first half of 2025. The list of companies authorized by the Ministry of Treasury is expected to be released on November 18th.
Lucíola Vasconcelos, CEO of Caixa Loterias, stated that Caixa already meets all the requirements and has submitted the necessary documentation, including proof of the required capital of R$30 million ($5.1 billion).
Original article: https://www.yogonet.com/international/noticias/2024/10/31/83771-caixa-projects-12-billion-in-revenue-from-sports-betting-next-year
