Brazil: Lula to meet Caixa President after uproar over state bank’s plan to launch betting platform

President Luiz Inácio Lula da Silva is set to meet Caixa Econômica Federal President Carlos Vieira this week to address growing controversy over the state-owned bank’s plan to launch its own betting company, known in Brazil as a “Bet.” The discussion comes amid criticism from opposition lawmakers who argue the move conflicts with Lula’s repeated calls for tighter control and higher taxation of gambling activities.

Caixa announced earlier this month that it would debut its betting operation by the end of November, with Vieira estimating revenues between R$2 billion and R$2.5 billion ($370 million–$463 million) by 2026.

“People tend to play more when jackpots roll over, and we didn’t have major accumulated prizes early this year. As for the ‘Bet,’ we’re preparing to launch it by the end of November. It’s a new market, and Caixa is a newcomer. We want to be an important player. Our revenue estimate is between R$2 billion and R$2.5 billion for next year,” Vieira said in a recent interview with O Globo.

The announcement has reportedly caught the Lula administration off guard and sparked frustration within the government, which has been vocal about the need to curb the expansion of online betting. Lula himself has pressed for higher taxes on the industry, lamenting the lapse of a Provisional Measure that would have raised the tax rate on betting operators from 12% to 18% but expired before Congress voted on it.

Caixa received its operating license from the Secretariat of Prizes and Betting (SPA) in July, authorizing the use of three brands: betcaixa.bet.br, megabet.bet, and XBET CAIXA.

The bank’s leadership has argued that the initiative is a strategic response to falling lottery revenues since Brazil’s regulated online gaming market was launched. Caixa believes that leveraging its nationwide network of nearly 15,000 lottery outlets will help capture a share of the growing sports betting segment.

However, the move has generated political and ethical debate, given the government’s critical stance toward gambling. Opposition figures have accused the administration of hypocrisy, citing Lula’s previous remarks denouncing the social costs of betting.

Caixa has seemingly signed a contract with Playtech, a global gaming technology provider, to supply the platform for its new operation. Playtech CEO Mor Weizer, without naming Caixa directly, confirmed during a recent company presentation that an agreement had been reached with “one of the largest operators in Brazil.”

“I can’t name them yet, but we are in advanced discussions with what we believe will become one of the largest operators in Brazil. They already have market access and a strong presence. They’re not yet active in online betting and gaming, but this represents a very significant opportunity for Playtech,” Weizer said.

Should the government decide to halt the project, the decision could trigger financial repercussions, as the Playtech contract reportedly includes a multi-million real termination clause.