Brazil’s state-owned bank, Caixa Econômica Federal, is preparing to enter the betting market with a new online platform that will go live by late November. The move marks the first time the public bank will compete directly with private betting companies, as part of its plan to expand beyond traditional lottery services.

Caixa President Carlos Vieira confirmed the news this week, saying the new platform would run under three authorized brands. He expects the new betting business to bring in between BR2 billion and BR2.5 billion (about $710 million) in revenue during its first year of operation. The launch is a major step in Caixa’s effort to keep up with Brazil’s growing betting industry and strengthen its position in the country’s digital market.

A New Step for Caixa

Caixa is well known for running Brazil’s national lottery and other public services. But as private betting companies become more popular, its lottery earnings have started to drop. Vieira said the new betting platform will help the bank earn money in new ways and attract more customers.

The project follows the official authorization of Caixa Loterias Ltda, which can now offer fixed-odds betting through three different brands. This means that for the first time, the bank will be able to operate sports betting and online gaming alongside its regular lottery games.

The launch also supports President Lula’s appeal for Caixa to connect more with Brazil’s middle class and grow its online presence. He wants the bank to modernize its services and offer more digital options for people across the country.

A Competitive Betting Market

Brazil’s betting industry has been expanding quickly since the country approved new betting regulations in 2023. Many private companies quickly joined the market, offering online betting services to millions of people in Brazil.

Recent studies show that illegal betting sites still have more customers than legal ones, but Caixa’s entry could help bring more people to safe and regulated platforms. Vieira stated Caixa is new to the market but aims to become a major player by earning people’s trust through honest and responsible gaming.  “It’s a new market and Caixa is a new entrant. We want to be an important player,” he said.

Tax Relief for Operators

Caixa’s launch comes at a good time since Brazil dropped plans to raise betting taxes from 12 to 18 percent. Finance Minister Fernando Haddad said the increase was fair but sensitive. Without this change, Caixa and other betting companies are likely to earn more, and its entry may push private firms to improve their services.

With its strong reputation, nationwide presence, and government backing, Caixa’s upcoming betting platform could become one of Brazil’s most trusted and widely used gaming services once it goes live in November.