Brazil: Sports Wagering Against COVID-19
To release Brazil from Covid-19's clutches, the government has enacted a billion-dollar bailout package. This package involves the privatization of the sports betting industry, among other things. Investments and job creation are critical priorities for the country. The regulation of sports betting has long been in a limbo state in Brazil. Will this long-awaited move finally come to fruition?
Privatizing the State Lottery
In February, Brazil adjusted its sports betting law. However, this occurred just weeks before the catastrophic economic and social fallout from the Covid-19 epidemic hit the nation, which continues today. As a way of leading the country out of the crisis, the National Investment Partnership Council (PPI), a government agency promoting investments, approved a €6.6 billion rescue package.
During the 13th PPI Council meeting, a series of concession and privatization processes were instituted. These processes aimed to generate revenue for the state treasury. Airports and the sports betting sector are to be privatized, along with the development of new tourist facilities and national parks. Additionally, exploration projects for natural resources such as oil, gas, and minerals are underway.
The Brazilian state lottery, which previously offered fixed-odds sports betting, is the focus of privatization. Up until now, only CAIXA, a Brazilian bank that also serves as a state financial services provider and manages most of the country's lotteries, was authorized to provide legal betting. CAIXA is also heavily involved in football sponsorship, boasting over 32 million customer accounts.
Jobs and Investment Opportunities
Previously, in 2016, the government announced an investment partnership program titled "Programa de Parcerias de Investimentos," targeting industries like sports betting for privatization. The program's objectives included job creation and new investment opportunities. Additionally, it sought to foster the use of new technologies, improve fair competition, and bolster the autonomy of regulatory authorities.
PPI has not provided specific figures, but predicts that the transfer of sports betting operations to the regulated sector could generate millions in revenue. Moreover, there would be digital innovation, creating more jobs. Martha Seiller, a PPI spokesperson, explained that the established goals align well with the sports betting industry.
The sports lottery is expected to join the PPI program to attract international investors, provided the law is upheld. The responsibility of carrying out these plans will be transferred to the Development Bank (BNDES) and the Ministry of Economy.
Divergence from SECAP Guidelines?
The new approach differs from the licensing procedure discussed at a recent Brazilian gambling summit. According to the proposed guidelines, each bookmaker would receive a license if they met SECAP's set conditions. The timeline for sports betting's introduction in Brazil remains uncertain, with iGamingBusiness not expecting any market openings in 2021.
A significant focus of the event was the protection of players, especially children and adolescents. To prevent them from gambling, the minimum age for sports betting was proposed to be 18. Moreover, all bets must be processed through a bank account to ensure the bettors' age.
Applicants were also asked to prove they'd never been convicted of criminal, administrative, civil, or financial offenses. They were also required to provide financial statements. The companies were expected to have a financial reserve of at least €1.3 million. Which of these measures will be implemented remains unclear.
Football Matches Amid High Mortality
Brazil has been heavily affected by Covid-19, with more than 1200 deaths reported on two consecutive days in the past week. The country's death toll surpasses 46,500, while over 955,400 have been infected. The current number of infections could be as high as 6.3 million, according to NTV. However, Brazil is allowing sports events to resume. Rio de Janeiro's stadium has held football matches since June 19, with CR Flamengo defeating Bangu AC 3:0.
Despite these grim statistics, football matches are taking place in the country, with Fluminense FC and Botafogo FR objecting to this. It's challenging to predict the long-term consequences of the pandemic.
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Source: www.onlinecasinosdeutschland.com
