Interactive
Brazil – Brazil’s lottery association says new app will decrease revenues
By Phil - 14 October 2019
Brazil’s largest state owned bank and lottery operator –the Caixa Econômica Federal (CAIXA) has launched an application for smartphones. The application has generated concern amongst lottery operators as the app could mean falling revenues in lottery outlets.
Marcelo Gomes de Araújo, a member of FEBRALOT (The Brazilian Federation of Lottery Companies) and ex head of the regional lottery union in the state of Minas Gerais said that: “We all know that technological evolution is inevitable. However, the CAIXA board of directors apparently does not remember that the lottery entrepreneur acquired and paid for their permit after participating in a bidding process.” In a statement Araújo also criticised the state institution arguing that CAIXA is aiming to take the lion’s share from lottery outlets, which will inevitably lead to a decline in revenues for operators.
Araújo also asked if it was ethical for the granting authority namely CAIXA to compete with the permit holder. Araújo said that the launch of the new app showed a total disregard for the members of FEBRALOT and said that the platform could be significantly improved to include them all.
Clashes between CAIXA and FEBRALOT are not new. CAIXA launched its website extending its offer of online games in August 2018. For the first time the site allowed non CAIXA bank account holders the chance to take part in its games. The portal allows players to take part in Mega-Sena, Lotofácil, Quina, Lotomania, Timemania, Dupla Sena, Loteca and Lotogol all through the specially designed website. Until then, only current account holders with Caixa accounts could bet on the Internet and only on Mega-Sena. The launch was initially scheduled for mid 2017but was delayed due to negotiations with FEBRALOT.
