Zona de Azar Brazil – Brazil: Caixa Econômica Federal Bets on the Future of Lotteries

Brazil.- April 16, 2024 www.zonadeazar.com  Caixa Econômica Federal (CEF) recently clarified that any process of privatizing the lottery service is subject to approval by the National Congress.

This statement comes in response to an appeal from Caixa employee associations, which expressed their firm opposition to the transfer of lottery operations to a subsidiary of the state financial institution.

The institution reiterated that the operation of lotteries is a public service, whose competence, at the federal level, is exclusive to the Union, as stipulated in the Federal Constitution. However, the Union delegated the execution of lottery modalities to Caixa, following the rules and guidelines established in current legislation.

Therefore, any initiative to privatize lotteries would require the enactment of a specific law approved by the National Congress, regardless of which company becomes the designated operator.

A group of bank employee associations sent a request to the president of the Caixa Council, the Secretary of the National Treasury, Rogério Ceron, requesting that the body’s members vote against the transfer of lottery operations to a subsidiary of Caixa, called Caixa Loterias. .

This crucial vote was scheduled to take place this Monday (15). Employees highlight three main reasons for concern regarding the proposal:

Outsourcing of lottery management, currently under the direct responsibility of Caixa, which could substantially change the way the service is provided and managed.

Impact on the transfer of resources from lotteries to public policies, as they represent an important source of financing for various government programs.

It warns of the possibility of privatization, arguing that the outsourcing of lotteries could set precedents for the total or partial sale of the company, potentially leading to the privatization of Caixa itself, an institution with a fundamental role in the Brazilian economy.

On the other hand, Caixa argues that transferring operations to a subsidiary would provide greater agility to modernize lotteries, especially given the growing competition from online sports betting, known as “bets”.

In this scenario, the associations express serious concern that this change could pave the way for an eventual privatization of the service, whether through the partial or total sale of the company. This clash reflects not only economic and political issues, but also concerns about the public character and social role of Caixa Econômica Federal in Brazil.

Edit @_fonta   www.zonadeazar.com