Caixa Econômica Federal (CEF) will be one of the main players in the betting market, according to the bank’s president, Carlos Vieira. He estimates that sports betting does not compete with lotteries and that revenue from these new initiatives should represent half of lottery revenue.
The information was released by Vieira during a press conference this past Thursday (22).
According to Caixa, lotteries and betting are not competitors
Caixa requested authorization to operate in the betting market. Vieira states that the betting market tends to grow in the coming years and, therefore, Caixa wants to be present. There is no competition with the lottery market. Today, Caixa has a constitutional monopoly on the operation of lottery games.
“[Lottery and betting] are not competitive markets. We are now operating in a new gaming and betting market. Speaking of strategy, we know that this is a very large market and that regulation will bring more formality to the market,” said Lucíola Vasconcelos, CEO of Caixa Loterias.
Caixa invests in the betting market in general. This includes lotteries, online betting and other products. Vasconcelos states that there is not yet a large investment to start betting activity and that this amount will increase as the operation begins.
The bank’s hope is that sports betting, together with Caixa’s new fronts, could represent 50% of the current revenue from traditional lotteries. The assessment is to reach this level when the segment is mature in the company.
“The Brazilian market tends to grow a lot in this segment and the bank wants to be present. The bank will be one of the main players in this segment”, said Carlos Vieira, president of Caixa.
Therefore, according to the president, the emergence of betting created a new dynamic and does not compete directly with Caixa’s lotteries.
The bank’s net profit increased in the last quarter
The bank states that it will be responsible for the player. Lucíola Vasconcelos states that the company has responsible gaming certification and will continue to focus on bettors. According to her, there will be conditions, warnings and instructions for everyone who plays in the Caixa bet.
Entry into the betting market will bring a new audience to Caixa. Currently, lottery consumers are over 45 years old. In contrast, Brazilians under 35 prefer sports betting. This age difference highlights different consumer profiles
The bank reported a net profit of R$3.3 billion in the second quarter of 2024, growing 27.3% compared to the same period in 2023. Thus, the financial margin also rose, reaching R$15.5 billion, an increase 4.1% compared to the second quarter of last year.
Caixa financing on the rise
Caixa’s total credit portfolio reached R$1.175 trillion in June 2024, registering a growth of 10.6% compared to the previous year. In other words, of this amount, R$783.6 billion came from the real estate loan portfolio, which increased by 14.8% in one year.
The bank expanded its presence in the real estate market in 2024. In the first half of the year, it financed 406.4 thousand properties, benefiting 1.6 million people and generating more than 803.9 thousand direct and indirect jobs.
Therefore, Caixa‘s share of real estate credit reached 68% in the second quarter, a growth of 1.4% in one year.
