Brazil has moved forward with its plans to establish a regulated sports betting marketplace after the government appointed a designated agency to take charge of finalising the market’s legislative and regulatory frameworks.
The publishing of this week’s federal gazette confirmed that President Jair Bolsonaro had signed ‘Decree 10,467’, appointing Brazilian social development bank BNDES to work alongside the Ministry of the Economy – as the agencies tasked with overseeing all elements of launching the regulated marketplace.
Agency responsibilities have been split, with Paulo Guedes, Brazil’s Minister of the Economy who co-signed the decree, instructing his department to finalise components related to the to the privatisation of the marketplace – establishing key requirements and conditions to initiate a bidding process for concessions.
Once established, BNDES will take charge of “executing and monitoring the privatisation process” reporting directly to Brazil’s Council of Investment Alliances Program.
Adding further legislative impetus, the formation of Brazil’s regulated sports betting marketplace has been included as a directive of the federal government’s Investments and Partnerships Program (PPI) – a flagship mandate leading Brazil’s economic recovery.
Launched in 2016 amid Brazil’s most recent financial crisis, the PPI scheme seeks to identify state-owned assets and public policy directives that can attract private sector financing, raising money for federal infrastructure projects.
Currently, the PPI portfolio includes 158 projects covering 13 policy areas which have been approved for privatisation, including 2019’s divestment of state-owned instant-win operator LOTEX.
Following a decade of protracted discussions, in 2018 outgoing President Michel Temer conditionally approved the mandate of Bill MP-846, allowing the government to restructure Brazil’s gambling laws.
Although primarily designed to revamp Brazil’s lottery frameworks, MP-846 allowed the government to launch a public consultation on sports betting and paved the way for a regulated marketplace.
Amid inbound changes to Brazil’s federal gambling laws, a raft of international operators’ have begun to pre-establish their presence within the market, including Betsson AB, 188Bet and Betfair.