Caixa Econômica Federal intends to increase its share of the Brazilian betting and lottery market from the current 52% to 65%. The state-owned company’s strategy is based on two main movements: the return of “scratch cards” and entry into the sports betting segment.
Lotex, popularly known as “scratch card”, should return to the market in the next 90 days. Caixa’s president, Carlos Vieira, explained that the expectation is that Lotex will reach revenues of R$1 billion per year.
The relaunch is a strategic step to regain space in the instant lottery market. The sale of scratch cards will take place in lottery outlets and virtually. Vieira predicts that 85% of revenue will come from physical sales and 15% from online sales.
Another important movement is Caixa’s entry into the recently regulated sports betting market. Although there is still no set date for launch, the product is in the authorization phase by the Ministry of Finance.
The forecast is that, in the first two years, Caixa will raise R$18 billion from sports betting. According to Vieira, “we want to recover lost space in this segment. Today, 52% of revenue from lotteries and betting in Brazil comes from Caixa. But our potential is to reach 65% of the market.”
International comparison and market growth
Carlos Vieira highlighted that Brazil is still little exploring the growth potential of the betting market. “In France, there is four times more betting than here. In the United States, revenue is 17 times greater”, he commented.
Caixa’s offensive in this sector aims not only to increase market share, but also to contribute to government social programs.
Of the R$6.1 billion raised by Loterias Caixa, R$2.4 billion was allocated to social programs, divided between social security, National Penitentiary Fund, Special Secretariat for Sports, National Culture Fund and health/education.
Lotex responsibility, education and exclusivity
Vieira stated that Caixa is also concerned about the responsibility of bettors. “We will promote educational campaigns”, he highlighted.
This is because awareness is a fundamental part of the strategy, aiming to ensure that growth in the betting market is sustainable and responsible.
After several failed attempts to auction the Lotex concession, the Treasury authorized Caixa to resume direct marketing of the instant lottery, exclusively for 24 months.
Therefore, the relaunch is scheduled for the third quarter of this year and should significantly increase Caixa’s participation in the betting market.
