Jair Bolsonaro, Brazil’s president, has signed into law a decree that added the sports betting onto the Investment Partnership Program portfolio and Privatization program the country is running.
The new law effectively hands over the process to the Ministry of the Economy and the state-operated bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
The two will start work on establishing bidding rules, which many expect will be nearly the same as the one used to facilitate retail of instant win Loteria Exclusiva Instantânea last year.
The choice to follow this route was reached in February 2020, and this saw the plans to develop a framework where operators who met the required criteria were free to apply, canceled.
The country’s undersecretary for sweepstakes and prizes, Wadir Marques, stated that several operators will be allowed to join the market. He also pointed out the importance and the benefits that come with legalization.
Wadir noted that based on press releases, Brazilians send between BRL 2 billion and BRL 8 billion abroad through international sites since this space is not well regulated in the country. He went on to say that this is an indication that the legalization of betting in the country will offer a much greater security to bettors, increased incomes, and more jobs, other than preserving the integrity of sports.
Legal wagering will boost state coffers via a 3 percent turnover tax on sports betting, which was included in legislation signed into by former premier Michael Temer in 2018.
Brazil’s sports betting market was to be launched before 2020 comes to an end, although a subsequent shift from qualitative models will see legal wagering launched live in 2021. Measures to complete the regulatory framework and shift towards the launch of the concession process were steeped up in 2020 after the PPI featured betting under a BRL37.03 billion package.
The package will create more funding to be used to finance the country’s economic recovery efforts after it was impacted by COVID-19.