Brazil's President Luiz Inácio Lula da Silva has asked Caixa Econômica Federal President Carlos Vieira to clarify the decision to launch a Government-run betting platform, "Bet Caixa."
The meeting will take place next week after Lula's return from Asia, with the possibility of suspending the project under consideration.
The platform, approved on a technical basis by the Secretary of Prizes and Betting (SPA) of the Ministry of Finance, was expected to launch in late November with an estimated BRL2bn to BRL2.5bn ($380m-$475m) in annual revenue by 2026.
However, the initiative drew sharp criticism for conflicting with the Government's rhetoric about gambling's social impact and its recent push to raise taxes on betting companies.
Senators Damares Alves and Cleitinho, along with several public figures, accused the administration of inconsistency.
Lula has publicly advocated higher tax rates on betting operators to offset social harms, while Finance Minister Fernando Haddad prepares new bills on betting and fintech taxation.
Caixa argues that the project aims to recover revenue lost to unlicensed foreign operators that pay no taxes in Brazil.
The bank maintains that its platform would attract bettors to a regulated environment, generate tax income and restore declining lottery revenues, reportedly down 50% since the rise of online bets.
Understandable lottery backing
However, the Brazilian Federation of Lottery Entrepreneurs (Febralot) issued a statement backing the project. President Ricardo Amado Costa called Bet Caixa a "necessary evolution" and praised its potential to "modernize the national lottery system, strengthen social reinvestment and promote responsible gaming."
Febralot highlighted the role of Brazil's 13,000 lottery retailers as a nationwide network capable of supporting a safer, state-supervised betting ecosystem.
The decision on whether to proceed with the launch will be made after Lula's meeting with Vieira next week.
Brazil's Ministry of Finance previously authorized Caixa Loterias to operate fixed-odds betting under three brands: 55W, BZ and Tropino
