Brazil: Caixa puts betting platform project on hold after alleged pressure from Lula

Caixa Econômica Federal has postponed the launch of its state-owned betting platform, initially planned for this year, following guidance from the government to avoid potential political backlash. The project, expected to generate R$2.5 billion ($465 million) in annual revenue starting in 2026, will now take a back seat to programs deemed more politically strategic.

According to reports, the Presidential Secretariat for Social Communication (Secom) has advised Caixa to channel its attention toward initiatives with stronger social impact, such as the housing renovation program, which carries a budget of R$40 billion ($7.45 billion) and significant electoral appeal. Another measure under development involves a credit line for delivery drivers, being crafted jointly with the Presidential Palace and the Ministry of Labor.

“The Bet is not a priority right now — there are other deliverables, including measures focused on the environmental area,” said a government official, as reported by Games Magazine Brazil. Caixa is also preparing to unveil new environmental and sustainability actions during the United Nations Climate Change Conference (COP30), scheduled to take place later this month in Belém.

The delay follows reported frustration from President Luiz Inácio Lula da Silva, who became irritated after learning of the project during his late-October trip to Asia. Upon returning to Brazil, Lula discussed the issue directly with Caixa President Carlos Vieira. 

Despite the political pushback, Caixa’s management continues to advocate for the ‘Bet’ project internally. The bank argues that Brazil is losing substantial revenue as a large share of bets are placed through foreign websites operating without authorization or taxation. Caixa’s technical team maintains that the platform would allow the bank to compete in the online betting market, which has seen rapid growth in recent years.

The Ministry of Finance has already approved the project from a technical standpoint, although it did not assess potential political consequences. Caixa has also highlighted that lottery revenues have dropped by nearly 50% since the proliferation of online betting, resulting in lower transfers to the Treasury, as 48% of gross lottery proceeds go to public programs.

Caixa’s plan to launch the betting system dates back to early 2024, but was delayed pending the Ministry of Finance’s regulatory framework designed to address illegal betting and safeguard players. In an interview with O Globo on October 16, Vieira confirmed the plan, stating his expectation to launch it by the end of November.