Part of the Investment Partnerships Program (PPI), the National Privatization Program (PND) now wants to see the sports betting industry be privatised to ensure job creation and benefit the public purse. Money collected from taxation and licensing fees would be directed towards areas hit hard by the global pandemic.
The minister of Economy, Paulo Guedes, has already given a formal go-ahead to the measure, arguing that this would allow Brazil to recoup some of the money lost due to the COVID-19 crisis.
Why is the privatisation of sports betting a good idea in the first place? The state would carry none of the risk, which will now be for up to overseas operators to settle. Operators will have to ensure the safety and integrity of sports contest and pay tax, as well as licensing fees.
Establishing the legal framework will fall within the remit of the National Bank for Economic and Social Development which will oversee the industry, at least as per the current proposal. However, whether Bolsonaro will sign is another matter altogether.
Online gaming and sports betting regulation has been long debated in Brazil and in the conditions of a global pandemic they may prove an important way to diversify the economy and aid recovery.
Betting and gaming have seen growing support in the region with more operators and brands targeting the region, including Bitcasino.io and Sportsbet.io both of which offer competitive gaming and sports betting product respectively, with the latter sponsoring popular football team Flamenco.