A proposal has been sent by Brazilian Senator Jaques Wagner to the country’s Ministry of Economy to detail the advantages of including sports betting in the National Privatization Program (PND), which seeks to privatise those industries in order to raise more revenue and capital.
According to PTSenado, Wagner asked Paulo Guedes, Minister of Economy, to explain the transition to the private sector of sports betting and to withdraw it from the hands of Caixa Econômica Federal, which currently has an organisational framework and integrated experience.
In August, Brazil ‘s President, Jair Bolsonaro, signed Decree 10,467 authorising the National Bank for Economic and Social Development (BNDES) and the Ministry of Economy to oversee the privatisation of sports betting activities. The legislation provides that sports betting is included in the Privatization and Investment Program (PPI), in which the private sector can take advantage of those activities.
“This initiative is based on the wrong premise that transferring [activities] carried out by the State to the private sector is beneficial for the society,” argued Wagner.
“This demonstrates that, in reality, the sale of certain services is detrimental to the well-being of Brazilians, because in addition to giving up an activity, it brings a concrete risk of cannibalization of the federal lotteries’ market,” he added.
Moreover, the Senator clarified that some social services, including Social Security, the National Culture Fund, the National Penitentiary Fund, the National Public Security Fund, the Brazilian Olympic Committee and the Brazilian Paralympic Committee, would not receive as much support as they do now if they were privatised.