Brazil has gone forward with its plans to develop a controlled sports betting industry after a specified agency has been named by the government to finalise the legislative and regulatory structures for the sector.
Publishing this week’s federal gazette announced that President Jair Bolsonaro had signed ‘Decree 10,467,’ naming Brazilian Social Development Bank BNDES to operate alongside the Ministry of Economy as the agencies responsible for overseeing all elements of the controlled marketplace launch.
The agency’s roles were divided, with Paulo Guedes, Brazil’s Economy Minister who co-signed the decree, instructing his department to finalize components relevant to marketplace privatization – establishing main criteria and conditions for initiating a concession bidding process.
When formed, BNDES will be responsible for reporting “executing and monitoring the privatisation process” directly to the Investment Alliances Council of Brazil.
In addition to further legislative impetus, the formation of the regulated sports betting marketplace in Brazil has been included as a guideline for the Investments and Partnerships Program (PPI) of the federal government – a flagship mandate leading Brazil’s economic recovery.
Launched in 2016 in the midst of the most recent financial crisis in Brazil, the PPI scheme aims to identify state-owned assets and public policy directives that can attract finance from the private sector, raising money for federal infrastructure projects.
The PPI portfolio currently comprises 158 projects covering 13 policy areas approved for privatisation, including the 2019 divestment of the state-owned instant-win operator LOTEX.
After a decade of lengthy negotiations, outgoing President Michel Temer conditionally approved Bill MP-846 ‘s mandate in 2018, enabling the government to restructure the gambling laws in Brazil.
While primarily designed to revamp the lottery systems for Brazil, MP-846 allowed the government to launch a public sports betting consultation and paved the way for a regulated marketplace.
In the midst of inbound reforms to Brazil’s federal gaming rules, a raft of foreign operators, including Betsson AB, 188Bet and Betfair, have begun pre-establishing their market presence.