Brazil senator Damara Alves has condemned the upcoming launch of federal bank Caixa Econômica Federal’s online betting offering.
Last year, Caixa, which maintains a federal lottery monopoly in Brazil, announced it was planning to launch an in-house online betting platform. It submitted a licence application ahead of the regulated market going live on 1 January this year.
Caixa is a state-owned bank in Brazil, which raises questions over whether such an entity should be involved in an industry that divides opinion among Brazilian politicians, despite its strict regulatory framework.
Earlier this month, in an interview with Brazilian news outlet O Globo, Caixa president Carlos Vieira revealed the bank would launch its betting offering in November.
The move remains controversial, however, and on Wednesday Senator Damares Alves hit out at Caixa’s plans.
Alves said the launch contradicted the level of social responsibility expected of Caixa, as a state-owned entity in Brazil as its product would put bettors at risk of gambling addiction.
“Caixa Econômica Federal’s decision to create its own online betting platform represents perhaps one of the greatest moral and social setbacks in the country’s recent history,” Alves told the Senate plenary.
“It is a contradictory, dangerous and profoundly irresponsible move, coming precisely from a public institution created to promote social development, affordable housing and financial inclusion, not to exploit the addiction and economic vulnerability of the poorest population.”
Why is Caixa’s betting entrance so controversial?
Alves claimed the launch of Caixa’s betting offering goes against the Brazil government’s objective to protect players from gambling harms.
In October Brazil’s government failed in its attempts to raise the gambling tax by 50%, while proposals to retroactively tax operators on their activities prior to regulation also collapsed.
However, the government seems to still be intent on raising taxes on gambling operators, with a new bill in motion to raise the rate to 24% of GGR, while additional ad restrictions are also on the horizon.
With the government believing it is taking steps to better protect bettors, Alves fears Caixa’s betting launch will legitimise the activity of betting and cause potential damage to Brazilians.
“The same government that claimed to want to control the damage now decides to be the agent of exploitation itself, transforming a public bank, a symbol of national trust, into an official betting house,” Alves explained. “It must be said bluntly: this is a tragedy waiting to happen!”
Caixa hoping to be at the forefront of Brazil betting
In the interview with O Globo, Vieira said he hoped Caixa would become a “major player” in the Brazilian regulated betting market.
Vieira estimated revenues of between BRL2 billion and BRL2.5 billion in 2026, Caixa’s first full year in operation.
Caixa’s authorisation to operate in the market was formalised through Ordinance No 1,665, issued on 29 July this year. The licence encompasses three brands, named BetCaixa, Megabet and Xbet Caixa.