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Controversial Brazilian president Jair Bolsonaro is privatizing sports betting and opens the market to interested investors. The Brazilian president signed a decree formally adding sports betting to the country’s Investment Partnership Program (PPI) portfolio and national privatization program, while handing state-owned bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and the Ministry of the Economy control of developing and running a process to select sports betting operators.
The bidding process will be developed by BNDES and the Ministry, and according to market insiders is likely to be similar to that used to facilitate the sale of instant win lottery business Loteria Exclusiva Instantânea (Lotex) in October 2019.
Undersecretary for prizes and sweepstakes at the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP) within the Ministry, Waldir Marques said multiple operators would be allowed to enter the market, and talked up the benefits of legalization: “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.
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.”
Marques added that legal wagering would also boost federal coffers through the 3% turnover tax on sports betting, included in the legislation signed into law by then-President Michel Temer in December 2018.
