Privatising sports betting can be seen as a way to generate job opportunities and attract more investments to the country boosting the national economic development
The Brazilian Minister of Economy, Paulo Guedes, together with Martha Seillier, Special Secretary of the Investment Partnerships Program of the Ministry of Economy, signed a determination which qualifies the “privatisation of the public lottery service called Fixed Quota Bets in the Presidency of the Republic's Investment Partnership Program - PPI and its inclusion in the National Privatisation Program - PND”
Fixed Quota Bets are described by the Brazilian Law as the lottery modality that covers sports-themed bets and that pre-defines, at the moment of the bet, the specific value of the prize that the player will get in case of scoring. This type of bet is managed exclusively by the Brazilian Federal Government.
The resolution signed by the Ministry of Economy has the strategic objective of reorganising the position of the State in the Brazilian Economy, transferring the responsibility for the management of sports betting or Fixed Quota Bets from the public sector to the private sector, thus allowing the Federal Public Administration to focus on fundamental state activities.
According to the Ministry of Economy, Paulo Guedes, the privatisation of sports betting can be seen as a way to generate job opportunities in Brazil, in addition to attracting more investments to the country and boosting the national economic development.
This resolution is addressed to the Brazilian President, who will analyse the inclusion of sports betting in the Presidency of the Republic's Investment Partnership Program - PPI and its inclusion in the National Privatisation Program - PND.
In case Bolsonaro´s position is favorable to the resolution, a period of time will be determined for the Ministry of Economy to present and approve necessary studies and researches about this theme to assure the effectiveness of the privatization process.
According to the Brazilian Law, the revenue provided from sports betting on physical spaces in Brazil allocates 80% to the prizes; 0.5% for social security; 1% for education; 2.5% for the FNSP; 2% for football sports entities; and 14% to cover expenses and maintenance.
In a virtual environment, this division changes to: 89% for premium payments; 0.25% for social security; 0.75% for educational entities; 1% for the FNSP; 1% for football sports entities; and 8% to cover expenses and maintenance.