Zona de Azar Brazil – Brazil: Cade Opens Case Against Caixa

Brazil – February 27, 2025 – www.zonadeazar.com After nearly two years of investigation, the Administrative Council for Economic Defense (Cade) has initiated an administrative process against Caixa Econômica Federal (CEF) for alleged anti-competitive practices in the lottery sector.

According to the investigation, CEF allegedly took measures to prevent lottery agencies from forming partnerships with digital betting intermediary platforms.

The investigation began in 2023 following a complaint from the Association of Digital Intermediaries of Lottery Games (Aidiglot), now known as Aigaming. The organization accused Caixa and the Brazilian Federation of Lottery Companies (Febralot) of using legal and administrative resources to restrict competition.

The accusations include abuse of the right to petition, an anti-competitive smear campaign, and market obstruction. However, a technical report from Cade dismissed the existence of “sham litigation,” meaning the filing of baseless lawsuits.

Despite this, experts identified evidence that Caixa and Febralot acted in coordination to limit partnerships between lottery agencies and digital platforms. According to the analysis, both entities allegedly abused their regulatory and union representation power to prevent contracts with digital intermediaries, making it more difficult to place bets through these platforms.

One example cited in the case is the de-authorization of agencies that registered bets on sites deemed illegal. The report concluded that these actions lacked valid economic justification and instead restricted competition and discouraged innovation.

Additionally, the investigation indicates that Caixa and Febralot not only influenced lottery agencies but also sent communications to private agents with agreements with digital intermediaries, resulting in the termination of some contracts.

The Cade report concludes that there is clear evidence of anti-competitive practices, as the measures taken aimed to hinder the digital intermediation of lottery bets. As a result, Febralot was also included in the case.

Cade’s general superintendent, Alexandre Barreto de Souza, endorsed the report’s conclusions and opened the administrative process, granting Caixa and Febralot one month to present their defense arguments.

Edited by: @_fonta www.zonadeazar.com