Brazilian President Jair Bolsonaro signed a decree that added sports betting to the Investment Partnership Program portfolio. Also, the government named sportsbook licensing managers.
The decree named the Ministry of the Economy and the Banco Nacional de Desenvolvimento Economico e Social to develop and supervise the process of choosing sportsbook operators. They will start working on the bidding process.
According to bookie pay per head reports, the bidding process will be like the one used in the sale of instant win lottery business in October 2019. The government agreed to the bidding process last February. Also, they scrapped the plan to allow operators to apply if they meet the requirements.
Sportsbook Licensing Managers
Undersecretary Waldir Marques of the Secretariat of Evaluation, Planning, Energy, and Lottery said various operators could enter the market. Also, he told pay per head sportsbook providers about the benefits of legalizing sports betting.
According to bookie pay per head reports, Brazilians spend BRL2 billion to BRL8 billion in offshore gambling websites. Legalizing can stop the flow of money going out of the country. Also, legalization sports betting can provide greater security for players, more income, and new jobs.
Based on sportsbook pay per head sources, legalizing sports wagering can preserve the integrity of sports. That was one of the critical conditions of the sports betting regulation. Legal sportsbooks have a turnover tax rate of three percent. Also, it would provide a boost to the government’s coffers.
The government thought that it would launch legal sports betting by the end of 2020. However, it seems like there will be a delay to the launch because they are still coming up with the legal framework.
Although the licensing managers stepped up the finalizing of the regulatory framework in June, they still have a lot of work needed to accomplish. The PPI Council included sports betting into the stimulus package that would boost Brazil’s economy during the pandemic.
