Caixa will enter the sports betting market, expects to obtain US$ 6.6bn in two years The president of Caixa Econômica Federal (CEF), Carlos Vieira, said he hopes to raise R$18 billion (US$ 6.6bn) in two years with the bank's entry into Brazil’s sports betting market. The statement was given in an interview with Poder360 at the institution's headquarters, in Brasília. According to him, Caixa will focus on preparations in the second semester and will look for a partner to operate.
In an interview with Poder360, the president of Caixa Econômica Federal (CEF), Carlos Vieira, stated that the bank expects to raise R$18 billion (US$ 6.6bn) in two years with the sports betting operation in Brazil. According to him, preparations should take off in the 2nd semester.
The bank will look for a partner to enter the market and should begin operations in 2025, when it is estimated that Caixa will raise around R$5 billion (US$ 1bn), rising to R$13 billion (US$ 2.6bn) the following year.
According to Vieira, Caixa will operate “in lottery environments and also in the digital environment.”
At the end of 2023, Caixa requested accreditation from the Ministry of Finance through the CNPJ of the bank's holding company and Loterias CAIXA.
“Caixa is authorized like any other company to operate in the betting market,” he stated. Vieira said that there is still no defined name for the product and that the bank's marketing department will work on it.
Caixa's entry into the betting market will represent great competition for companies already operating in the sector, all of which are smaller.
Furthermore, there is an expectation that Caixa will enter into agreements with lottery retailers to offer yet another operational facility for those who wish to bet. Another relevant consequence is that the federal government will have a new source of recurring revenue with the state bank's entry into the sports betting business.
Scratch card in May
Vieira said he expects Lotex (Exclusive Instant Lottery) – also known as scratch card – to be on sale within 40 days. He estimates that he will earn R$1.5 billion (US$ 300m) from the product in 2024.
In December, the Ministry of Finance authorized Caixa to resume sales. The bank has the exclusivity to sell the product for 24 months in Brazil. “We are finalizing the entire organization process at Loterias CAIXA,” declared the president.
https://www.gamesbras.com/english-version/2024/3/20/caixa-will-enter-the-sports-betting-market-expects-to-obtain-us-66bn-in-two-years-43612.html