Brazil’s Caixa launches online lottery service

State bank Caixa Econômica Federal launched an online lottery service on Friday, a month after failing to sell its lottery licensing unit.

Brazil.- Brazillian authorities’ plan to privatise the Caixa Instantanea SA turned out to be unsuccessful just a month ago but the state bank Caixa Econômica Federal continued to move its business. Last Friday it announced the launch of an online lottery service, which is expected to boost volumes and allow the bank to charge a higher fee.

Caixa is expected to charge a 12 per cent revenue fee, which is higher to conventional lottery ticket sales, from which it holds a 10 per cent. “We are now considering a potential change in the business model,” Caixa Chief Executive Nelson Souza told journalists at a press conference.

The lottery unit was set to be sold and generate around US$144 million for the Brazillian government. However, no private companies were interested in investing and the sale failed to be completed, which is why it is expected that the local authorities will rethink their strategy in order to relaunch the bidding process and finally succeed.