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In a strategic decision, the board of directors of Caixa Econômica Federal approved the transfer of the bank’s lottery activities to Caixa Lotteries, a wholly owned subsidiary of Caixa created in 2015 for this purpose.
The measure aims to drive business modernization, expand the gaming market, diversify products and increase profitability.
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Greater Focus and Growth of Lotteries
Caixa believes that migrating the activities to Caixa Lotteries will provide greater focus and drive business growth.
“This change will allow for more specific direction and contribute to achieving our objectives of modernizing lotteries, expanding the gaming market, diversifying products and increasing results”, the bank stated.
Exclusivity and Competition
Caixa holds the legal exclusivity to operate lotteries in Brazil, including renowned brands such as Mega Sena.
However, the sector faces growing competition from online sports betting platforms, known as bets, which were regulated by the government in 2023.
Protests and the Future of Privatization
Caixa's decision sparked protests from the bank's employee associations, which fear opening the door to the privatization of the business.
In an official statement, Caixa clarified that privatization depends on approval by the National Congress, regardless of which company is responsible for operating the lotteries.
Lottery outlets represent an important service channel for Caixa, with 13.3 thousand units across the country in December 2023, equivalent to 50% of the bank's physical service network.
Caixa: Unions Take Legal Action Against Transfer of Lottery Operations
The National Federation of Caixa Employee Associations (Fenae) and the National Confederation of Workers in the Financial Sector (Contraf-CUT) filed a public civil action in the Labor Court this Wednesday (17). The aim is to annul the decision by the Board of Directors of Caixa Econômica Federal to transfer the activities of the Lotteries to the subsidiary Caixa Loterias.
Sergio Takemoto, president of Fenae, protested, saying: “We cannot condone a decision that could harm the population, the bank and its workers. Since 1962, lotteries have been operated by Caixa efficiently, and part of the funds raised is allocated to social public policies that benefit millions of Brazilians through education, healthcare, security, among others.
The organizations argue that the measure would cause irreparable harm to society and losses for Lottery workers. The main risks identified include:
- Job losses: The migration to the subsidiary could lead to the closure of units and the dismissal of employees;
- Job insecurity: Caixa Loterias, being a private company, may offer working conditions inferior to those at Caixa, such as lower salaries and fewer benefits;
- Deterioration in service quality: The transfer could lead to a loss of expertise and a deterioration in the quality of the services provided;
- Privatization of the Lotteries: The organizations fear that the migration will be an initial step toward the privatization of the Lotteries, a public service of great importance to the country.
In light of the foregoing, Fenae and Contraf-CUT ask the courts to order the immediate suspension of the migration to Caixa Loterias. The entities also request that Caixa conduct a detailed impact study on the consequences of the measure, with the participation of workers and civil society.
Image: Zenon Lapolli
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