Febralot Warns BetCaixa Freeze Fuels Illegal Betting and Revenue Losses

The federation argues that the move undermines Brazil’s regulated betting market and risks strengthening illegal operators.

According to Febralot, blocking BetCaixa could divert more than BRL 10 billion (approximately $1.9 billion) in annual tax revenue away from the country, as bettors may turn to offshore platforms that do not contribute to public finances. The proposed platform was designed as a digital fixed-odds betting service integrated into Caixa’s extensive lottery network and online banking infrastructure, following the regulation of the betting sector in 2023 and 2024. Early forecasts suggested BetCaixa could generate around BRL 2.5 billion in revenue by 2026.

The Presidency reportedly halted the initiative in late 2025 amid political debate about the social and economic consequences of expanding gambling access. Health Minister Alexandre Padilha dismissed the project as “speculation,” saying he had not seen a concrete implementation plan and warning about potential risks related to addiction and impacts on families.

However, Febralot maintains that a regulated, state-backed platform would provide safer conditions for consumers while keeping financial flows within Brazil. The federation notes that the Ministry of Finance’s Secretariat of Prizes and Betting (SPA) had already authorized Caixa in July to operate fixed-odds betting under the brands BetCaixa, Megabet, and XBet Caixa, signaling institutional readiness for the project.

Industry representatives also stress that offshore betting sites currently capture a large share of Brazilian wagering activity without paying local taxes or adhering to responsible gambling standards. In their view, suspending BetCaixa contradicts the government’s stated objectives by pushing consumers toward unregulated markets and sending valuable data and revenue abroad.

Febralot has appealed to the Federal Senate for support and is urging that the issue be submitted to the President for reconsideration, warning that continued delays could hinder the development of a transparent and competitive betting framework in Brazil.