In the recent news from the gambling and betting industry worldwide, Brazil has officially privatized the sports betting sector. The proposed legislation which has been finally signed into law by President of Brazil, Jair Bolsonaro aims to make sports betting sector, a part of the country’s Investment Partnership Program (PPI) portfolio.
This moves comes in after the study of industry data which suggested that the people in Brazil send abroad between BRL2 billion and BRL8 billion annually. This is done via offshore gambling websites as sports betting is illegal in the country. Rectifying the situation, Brazil not only passed sports betting legislation but also privatized the sector which would serve multiple purposes. In addition to providing greater security for bettors, it will also create new jobs and add more income to the state coffers. Further, it will also preserve the sporting integrity, which is a key component for regulation.
The decree to privatize the said sector was first of all proposed by Ministry of Economy in Brazil which is now seen as a measure to partially offset the negative impact of COVID-19 on the economy of Brazil. The original law which approved sports betting was Law No. 13,756, that was signed into legislation by the then President of Brazil, Michel Temer in December of 2018. The present decree simply acts upon the law that was already approved back in 2018.
This move to make the sports betting businesses in Brazil, the property of the state, was lauded by Minister of Economy, Paulo Guede, who was reported to call this need “reordering the strategic position of the State in the economy”.
The Decree No.10,467 which has been signed by current President Jair Bolsonaro designates the National Bank for Economic and Social Development (BNDES) and the Ministry of Economy as responsible agencies for overseeing the process of privatization. According to the new law, sports betting will be launched as public lottery service under the name ‘fixed-odds betting’ whose addition into Investment Partnership Program (PPI) program will help in attracting investment from the private sector.
While BNDES has been designated the responsibility to execute and monitor the privatization process, the Ministry of Economy has been handed the responsibility to coordinate and monitor studies, projects, surveys or any other type of investigations that may be deemed necessary for the said purpose.
Further, the Ministry’s Secretary of Public Policy, Planning, Energy and Lottery (SECAP) will be handling the drafting of specific betting regulations. SECAP, according to its earlier statements this year, plans to authorize only 30 betting licenses. The government is set to receive money from both tax and license fees and the state would remain the main beneficiary of the sports betting business. Brazil looks forward to great competition among foreign operators who would be anxious to capture its betting market but the country still needs to come up with a system that would protect the integrity of sports and uphold its high standards.
Brazil also plans to legalize casinos but is currently facing vehement opposition due to increased money laundering issues in the country. Rest assured, Brazilians have the options to go for the state-run lottery and the legally available sports betting sector.