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Three listed banks, Banese (BGIP4), Banestes (BEES3), and BRB (BSLI4), are joining Brazil’s rapidly growing online lotto and gaming market. As the sector continues to see record growth, these banks are queuing up to access a multi-billion-real industry that is growing in government attention as well as public focus.
A Fast-Growing Market
According to a report by Regulus Partners published by BBC News Brasil, the Brazilian online betting market should bring in approximately R$22 billion in revenue in 2025. The federal government has already received R$6.8 billion in taxes on betting firms in the first three quarters of the year, according to Investidor10.
The entry of state and regionally owned banks into this space is a strategic step, merging financial services with consumer entertainment-fueled interaction. It coincides with the current fervent debates on state gambling morality, regulation, and responsible gambling.
Banese Pioneers the Way with Lotese
The Banco do Estado de Sergipe (Banese) became the first bank to trade on B3 to legally enter the betting and lottery sector. In May 2025, the bank established Lotese (Loterias de Sergipe), offering over 600 games, such as online sports betting, numerical forecasts, and instant games (“scratch cards“).
It was established as a three-party joint venture among Banese, Culloden Participações, and TSA Informática, together running the BetSul Concessionária de Serviços Lotéricas do Sergipe. Banese owns 49.9% of the venture that has been granted a concession period of 20 years.
In initiating the program, the CEO of Banese, Marco Antônio Queiroz, said that “the money raised and directed to the government of Sergipe will remain in the state, to be invested in development and quality of life for our people.” He also noted the inbuilt transparency and regulatory oversight.
Through the revenue sharing arrangement, 5% of total lottery revenues is sent directly to the state government. The net revenues are then apportioned among the public programs: 35% is allocated for social inclusion, 25% for culture, 25% for sport, and 15% for environmental programs.
Banestes Nears Launch with Strategic Partnership
The Banco do Estado do Espírito Santo (Banestes) will run its own lottery business by the last quarter of 2025. In 2023, the state government, led by Renato Casagrande (PSB), authorized establishing the Loteria do Espírito Santo as a Banestes subsidiary.
The bank has only recently entered exclusive talks with the World Lottery Consortium, which was selected after an open tender. The two sides are discussing “terms and conditions of final contracts” and conducting mutual due diligence, Banestes states.
Amarildo Casagrande, CEO of Banestes, explained that the selection process was “highly rigorous“, seeking a partner with international experience, technical certification, and good technological infrastructure.
The state law requires that a maximum of 12% of the lottery receipts be donated to the government of Espírito Santo, and they fund sports, culture, leisure, social welfare, and tourism projects.
The Banco de Brasília (BRB) also sought to launch its own lottery in 2023 or 2024. The initiative was, however, abandoned after the Procuradoria-Geral da República (PGR) opened a probe into the bank’s agreement with the Santa Casa de Misericórdia de Lisboa, causing it to be shelved.
Growing State Involvement and Moral Controversy
Caixa Econômica Federal, the national lottery provider in its history, is preparing to bring its Bet da Caixa brand to the market by November 2025 with ambitions to achieve R$2.5 billion in 2026.
Despite the potential for revenue, President Luiz Inácio Lula da Silva has publicly aired his concern over the social effects of gambling: “Lots of people are going into debt, spending what they don’t have. We consider it an issue of dependency“, he said in October 2024, amid discussions on tighter regulation.
As federal agencies and local banks adopt the lottery and wagering industry, Brazil is presented with a delicate balance act, promoting economic growth and innovation alongside guaranteeing prudent practices in an industry that is more and more connected with finance and entertainment.
Source: BNL Data
