Workshop Between Caixa and Febralot Updates Demands and Brings News to the Lotérica Network

April 19, 2024 | Government

BRAZIL (April 18, 2024) — On 04/15/2024, a workshop was held in a hotel in Brasília with the participation of the board of directors of the Brazilian Federation of Lottery Companies – Febralot, leaders of state unions and executives of Caixa Econômica Federal.

The opening of the event was made by Network and Payment Director Matheus Sinibaldi, who thanked everyone for their presence and asked that the moment of the meeting be taken advantage of so that all CAIXA Executives could once again listen to the Lotteries in order to understand the moment of crisis that the Lotteries pass by and try to do their best to find solutions for the Lottery Network, which is very important for the Bank.

The President of FEBRALOT, Jodismar Amaro thanked the event and asked that the work teams formed on 01/31/2024 by the President of CAIXA, Carlos Vieira, were more effective, as in 75 days nothing concrete had been delivered. This is a very long time for Lotteries who are going through a serious economic and financial crisis.

Afterwards, several Presidents of State Unions spoke, explaining and arguing the main problems of the Network, such as:

. Need for Lotteries to have a seat on the CAIXA Loterias Board;

. Concern about the imbalance in CAIXA’s agreement with the Post Office;

. More specific marketing for games with game prizes and accumulated values;

. Campaign to reward customers who use Lottery services;

. Participation in governance in the Lottery Development Fund (FDL);

. Definitive solution to operating system unavailability problems, more specifically with backup migration;

. Systematic to reimburse the Lottery for the financial value due to the unavailability of the operating system.

Matheus Sinibaldi committed to sponsoring the work teams so that solutions to problems are planned and implemented more quickly. The Superintendent of SUALO, Kleber Paz, said that the agreement with Correios is a way of meeting the Government’s request so that there is a synergy between the Bank and Correios and what has been planned and approved so far is that lotteries can be a point collection of the Post Office and that CAIXA, through space provided in the Post Office branches, carry out the social service activities that they currently carry out exclusively in the CAIXA branches. There are no plans to carry out transactional operations or sell CAIXA Lottery games.

He also informed that 600 Lottery Companies registered in the “COLLECTION POINT” program, 200 of which were approved by the Post Office and the remaining 400 were rejected due to distance criteria with Post Office agencies.

The Chief Executive Officer of CAIXA Loterias spoke to the effect that the migration of CAIXA games to the subsidiary that is currently being decided by the Bank’s Board will bring focus and agility to Federal Lottery operations, as well as to the fixed-odd betting market, the BETs. In this way, she proposed an activity to gather suggestions from the Presidents of the State Lottery Unions so that they could form 5 groups and debate ideas based on five themes to guide the work of Caixa Loterias, namely:

Modernization of the Gaming Business;
Monetization of Lotteries;
New products;
Innovation;
Incentives to increase game sales.

SUALO made a presentation on the evolution of the sale of Games and Sweepstakes in the first quarter of 2024 in relation to the previous year, where a significant increase of 22% was found. Also noteworthy was the increase of R$2.5 billion in Mega Sena (27.1% increase) and R$370 million in + Milionária (300% increase), which were the ones that contributed most to the evolution presented.

In relation to the special “Easter Duo” competition, there was an increase of R$100 Million in fundraising and a record prize of R$37 Million.

The accounting calendar for Bolões da Quina de São João was presented, with parallel sales starting on 05/20/2024 and the draw will be on 06/22/2024. This year, the calendar brings a reduction from 15 to 12 days in the exclusive sales period.

It was also reported that the current average share of game sales is 81% in Lotteries and 19% in electronic channels

During the SUALO presentation, Aldemar Mascarenhas, Vice-President of FEBRALOT, asked the CAIXA gaming division to reevaluate the execution of 3 weekly Mega Sena contests, as there is a great outcry from the Lottery Network for this, mainly due to the limited time for the sale of higher value prizes.

Mascarenhas also highlighted the need for advertising for the + Millionaire modality, which is close to the historic value of R$ 200 Million for the main prize and still does not arouse due interest among bettors.

Regarding the Market Place for pools, which is scheduled to be launched this semester, there is still a great doubt on the Network about its effectiveness, as there were statements for and against, from those present.

The National Marketing Superintendent, Adriana Probst, presented a survey carried out with bettors with the following result:
83% of the bettors interviewed have already bet on Lotéricas;
70% of them prefer the physical channel.

He also presented the Quina de São João campaign material, with the characteristic motto and prize of 220 million, with the possibility of a gradual increase during the campaign and sending the pieces to the Lotérica from 04/15/2022.

Adriana also presented some data and results from the Bank’s Marketing campaigns aimed at Lotteries.

Representatives from Rede Lotérica questioned the Executive about the feeling of little advertising for the channel, the way of publicizing the Lotteries, where the best appeal of the prize is not explored and the participation of the channels in the portfolio of advertising pieces.

Adriana argued that 76.1% of survey respondents find out about Lotteries on the Internet and 75.6% through traditional media, relevant data that shows the importance of advertising on all channels. She also asked to participate in more meetings with Lotteries so that, as far as possible, the perceptions and practice of the Games Marketing process can be adjusted.

In the afternoon, CAIXA SEGURIDADE, through its representative Ricardo Tabatchnik Coentro, made a campaign presentation to encourage sales of the products: Seguro Amparo, Rapidex and Consórcio, which through increment bands will be allocated to those who sell the most of the above products, up to 288 prepaid cards worth R$1,600.00 totaling R$760 thousand for the campaign.

Ricardo made the Caixa Seguridade structure available for training and training of attendants, including “Nano Learning” tools, mainly in the micro courses on WhatsApp available: Insurance support, Life insurance as a financial education tool and Vida Mulher.

Lottery representatives asked that a consortium product be structured for TFL, something customized and with few marketing variables, such as the acquisition of a motorcycle.

There was also a talk by Olympic athlete Lucas Mazzo, who is sponsored by CAIXA Lotteries:

Lucas spoke about the importance of Caixa Lotteries to Brazilian sport and the social inclusion that this represents. He also extolled the importance of discipline and constancy of purpose.

The President of CAIXA Cartões, Humberto Magalhães presented the campaigns to encourage Lotteries to take up the card machine from other banks, Azulzinha at TFL.

Maquininha Azulzinha Pro:
Anyone who needs the POS under the same conditions as the TFL to have mobility in sales, can subscribe to the specific term in Conexão Parceiros to receive the new machine with the same frequency as the TFL. The rent is R$ 29.90 and for now it cannot be the same machine as those who already have it.

On the occasion, Humberto presented the change in the remuneration of receipts in the modality, including Lotteries with a participation, from 04/16/2024 and monthly remuneration.

There will be three monthly calculation periods and payment of the commission on the sixth business day of the subsequent month in account 003 under a specific item to be disclosed.

The customer convenience rate in the debit function is now 1.08% with a Lottery recurrence rate of 0.10%.

In the credit function, the aforementioned customer rate remains at 2.95%, with a recurrence rate for the Lottery of 0.22%.

The President of FISERV, CAIXA Cartões’ technological partner, Jorge Valdívia also announced that the incentive for sales in the credit modality will be readjusted from 0.22% to 0.30% when accumulated sales reach the mark of R$ 1 Billion (Today they are at R$363 Million.

In CAIXA’s IT presentation, two topics were highlighted:

Biometry:

IT is working so that, by August, all ULs have at least 1 biometric reader working per UL, the difficulty is due to the time the equipment is inoperative and the need for the supplier to change a battery and re-register the equipment in the system, lost after the end of battery charge.

Migration of the backup signal to 4G:

TI reported the evolution of the number of migrated Lotteries which is now at 70% and the main causes of the lack of automatic interchangeability between the two ways of obtaining the signal are becoming smaller and smaller.

He also highlighted that at least 2100 Lottery Stores will need to maintain the signal through VSAT antennas due to the region’s characteristics not allowing a good signal through a physical cable network or through 4G.

There was a disagreement on the part of Lotteries regarding the numbers presented by IT and that the signal should be made available on 100% of the Network, as well as compensation for the loss caused to Lotteries that remain or are stopped due to the change.

GERLO’s presentation featured the following deliverables:

Reset of Caixa TEM, which is the registration recovery in the lottery with remuneration of R$ 1.02;
Withdrawal without card with biometrics of up to R$5,000 with R$1.10 in remuneration;
New address change flow, where the request is now made in Conexão Parceiros;
Creation of a conduct adjustment agreement (TAC) to avoid the Consequences Process (PDC), where there is guilt, but not bad faith. Combined with the already publicized process of advance diligence, the closure of Lotéricas to investigate irregularities will decrease drastically. A good defense is required in the two new ways of recovering Lotérica. Instrument and evidence should preferably be directed by the Lottery Union lawyer.
New categories of tickets in Conexão Parceiros for:

. Inclusion of moving limit

. Request for additional with armored car

. Request for additional shielding

New registration of operators in the TFL with universal use of the CPF, serving more than one Lottery and ensuring awareness of certifications when necessary.
Resumption of Direct Consumer Credit – CDC at TFL, which had been suspended since November/2023. More than 1.2 million customers with pre-approved registration.

Deliveries under study:

Reassessment of the value of additional shielding
New Institutional additional, paying the Lottery for the Bank’s service, where the revenue does not allow the partner to balance.
Reimbursement in value for system unavailable time.

At the end of the workshop, all parties mentioned the validity of the event to integrate the understanding between the Bank and the Lotteries and the need for timely actions for the economic and financial balance of the Class.

TOGETHER WE ARE STRONGER!

LOTTERIES ARE WORTH MORE!

Febralot Board

SOURCE: FEBRALOT – Brazilian Federation Of Lottery Companies.