Brazil's state-owned bank Caixa Econômica Federal has decided to suspend the launch of its planned betting platform following direct pressure from Brazil's President Lula da Silva.
The platform, which was expected to debut later this year, aimed to be operational from 2026 and hoped to generate an estimated BR2.5bn ($440m) in annual revenue.
However, after opposition lawmakers attacked the plan and questioned the Government's priorities, Lula reportedly ordered the bank to hold off.
The Presidential Secretariat for Social Communication advised Caixa to focus on more politically aligned projects, such as a BR40bn housing renovation program and a new credit line for motorcycle couriers being developed with the Labour Ministry.
Caixa is also preparing to announce sustainability-related projects during the UN Climate Change Conference this month.
Lula's frustration with the public response surfaced during his late-October trip to Asia, when opposition criticism of the plan reached the press.
Upon returning to Brazil, he discussed the matter directly with Caixa's president, Carlos Vieira.
Despite the suspension, Caixa continues to defend the proposal internally. Executives argue that the platform would help reclaim revenue lost to unlicensed offshore betting sites that operate without paying taxes in Brazil.
According to the bank, lottery income has fallen by 50% since the rise of online betting, reducing Government funds, as 48% of Caixa's lottery revenue is channelled back into public programs.
The project had been under review since early 2024 and had already received technical approval from the Ministry of Finance, though it hadn't yet received political clearance from the President.
Senator Damares Alves criticized Caixa's entry into the betting market, calling it "contradictory" for a state bank to profit from gambling
