Three Brazilian Banks Enter the Online Lottery and Betting Market

Banese, Banestes and Banco de Brasília (BRB) have officially joined Brazil’s rapidly expanding online lottery and gambling sector — a multibillion-real industry that continues to attract new investors and public attention.

The three state-linked banks — Banese (BGIP4), Banestes (BEES3) and BRB (BSLI4) — are moving to diversify their operations and capitalise on the strong growth of Brazil’s regulated gaming market. According to industry reports, the country’s online gambling sector generated about US $1.5 billion in 2024 and is projected to double to US $3 billion by 2030, driven by rising digital adoption and state-level lottery concessions.

Banese, the state bank of Sergipe, launched its lottery arm Lotese in partnership with Culloden Participações and TSA Informática earlier this year. The 20-year concession, in which Banese holds a 49.9% stake, is expected to generate hundreds of millions of reais in annual revenue for the state.

Banestes, the Espírito Santo state bank, has entered exclusive negotiations with the World Lottery Consortium to launch its own lottery and betting operation before the end of 2025. Meanwhile, Banco de Brasília (BRB) has reaffirmed its plans to participate in the segment after revising an earlier project following federal review.

This new wave of public-sector participation in gaming marks a significant shift in Brazil’s fiscal strategy. By entering the betting and lottery markets directly, state banks aim to boost public revenue beyond taxation and capture part of the profit generated by regulated gaming.

The move comes amid continued debate on gambling regulation in Brazil. President Luiz Inácio Lula da Silva has voiced concern about gambling’s social impact, while state governments increasingly view the industry as a stable source of revenue and employment.

Analysts suggest that the entry of Banese, Banestes and BRB could accelerate the professionalisation of Brazil’s betting market — but also raise regulatory and ethical challenges as public banks step into an industry traditionally dominated by private operators.