Brazilian Minister of Economy signs a favorable resolution to privatise sports betting

Privatising sports betting can be seen as a way to generate job opportunities and attract more investments to the country boosting the national economic development

The Brazilian Minister of Economy, Paulo?Guedes, together with Martha?Seillier, Special Secretary of the Investment Partnerships Program of the Ministry of Economy,?signed a determination which qualifies the “privatisation of the public lottery service called Fixed Quota Bets in the Presidency of the Republic’s Investment Partnership Program – PPI and its inclusion in the National Privatisation Program – PND”

Fixed Quota Bets are described by?the Brazilian?Law as the lottery modality that covers sports-themed bets and that pre-defines, at the?moment of the bet, the?specific value of the prize that the player will get in case of scoring. This type of bet is managed exclusively by the Brazilian Federal Government.?

The?Brazilian?President, will analyse?the?inclusion of sports betting in the Presidency of the Republic’s Investment Partnership Program – PPI and its inclusion in the National Privatisation Program – PND.

The resolution signed by the Ministry of Economy has the strategic objective of reorganising the position?of the State in the Brazilian Economy, transferring the responsibility for the management of sports betting?or Fixed Quota Bets from the public sector to the private sector, thus allowing the Federal Public Administration to focus on fundamental state activities.?

According to the Ministry of Economy,?Paulo?Guedes, the privatisation of sports betting can be seen as a way to generate?job opportunities in Brazil, in addition to attracting more investments to the country and?boosting the?national economic development.?

This resolution is addressed to the?Brazilian?President,?who will analyse?the?inclusion of sports betting in the Presidency of the Republic’s Investment Partnership Program – PPI and its inclusion in the National Privatisation Program – PND.

In case?Bolsonaro′s?position?is favorable to the?resolution, a period of time will be determined for the Ministry of Economy to present and approve?necessary studies and researches?about this theme to assure?the effectiveness?of the privatization process.?

According to?the Brazilian?Law, the?revenue provided from?sports betting on physical spaces in Brazil allocates 80% to the prizes; 0.5% for social security; 1% for education; 2.5% for the FNSP; 2% for football sports entities; and 14% to cover expenses and maintenance.?

In a virtual environment, this division changes to: 89% for premium payments; 0.25% for social security; 0.75% for educational entities; 1% for the FNSP; 1% for football sports entities; and 8% to cover expenses and maintenance.?

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