Sports betting privatization has been approved in Brazil after President Bolsonaro signs the decree proposal from the Ministry of Economy. In which, sports betting will become part of the country’s Investment Partnership Program (PPI) portfolio.
The proposal also came as a measure to partially offset the negative impact on the Brazilian economy. This is due to the effects of the spread of coronavirus pandemic. The country’s official economic data shows the economy shrinkage by 1.5% during the first quarter of 2020. Besides, prompting the introduction of measures to stimulate businesses and create growth.
The PPI program further aims to create additional jobs, which in June, added to its portfolio of BRL-37 billion sports wagering.
Sports Betting Privatization – Public Lottery Service
According to the new sports betting privatization law, sports betting to launch as a public lottery service. It will be under the name “fixed-odds betting” and its addition to the PPI program. It will provide betting odds that will also help attract investment from the private sector.
The National Bank for Economic and Social Development (BNDES) and the Ministry of Economy will oversee the process of privatization. BNDES will be in charge of the execution and monitoring of the privatization process. And the Ministry of Economy will be responsible for coordinating and monitoring studies, projects, and surveys. Aside from that, the ministry is also responsible for any other type of investigations necessary for the proposed privatization to be effective.
Keeping In-House Funds and Create Jobs Locally
According to the records, Brazilians send abroad between BRL2 and 8 billion annually via offshore online casino via its sportsbook product. It is because sports betting is illegal in the country, wherein Brazil authorities look to provide greater security for bettors. It is while also creating new jobs and adding more income to the state coffers, besides preserving sporting integrity, a key component for regulation.
There will be a delay in the sports betting framework, which is initially ready to go live before the end of 2020. The expectation for the legalization of wagering will be complete and to launch in 2021.
