BNDES and the Ministry of Economy are now responsible for sports betting in Brazil and will run a process to select sports betting operators
Brazilian President Jair Bolsonaro has signed a decree which adds sports betting to the country’s Investment Partnership Program (PPI) portfolio and national privatisation programme.
Per the decree, the National Bank for Economic and Social Development (BNDES) and the Ministry of Economy are responsible for sports betting in Brazil and will run a process to select sports betting operators.
The bidding process is likely to be similar to that used to facilitate the sale of instant win lottery business Loteria Exclusiva Instantânea (Lotex) in October 2019. Previously it was discussed that any operator that met the licensing requirements could apply but this idea got scrapped in February.
Marques, undersecretary for prizes and sweepstakes at the Secretariat of Evaluation, Planning, Energy and Lottery (SECAP) within the Ministry, said multiple operators would be allowed to enter the market and added: “According to industry press, it is estimated that Brazilians send BRL2bn to BRL8bn abroad via international [gambling] sites, as the vertical is not regulated in the country.”
Marques further said: “This indicates that the legalisation of sports betting in Brazil will provide greater security for bettors, new jobs and more income, in addition to preserving sporting integrity, which is a key condition of regulation.”
Brazil’s sports betting market was originally expected to launch before the end of 2020, though the late shift away from the qualitative model is expected to see the legal wagering go live next year. The government hopes that sports betting will create additional funding for Brazil’s economic recovery, after the country was badly affected by COVID.