The Brazilian Ministry of Economy worked on a plan for sports betting industry privatization. It already got the approval of the Paulo Guedes, Minister of Economy. However, it requires the approval of President Jair Bolsonaro.
However, the president is still busy dismissing COVID-19 as a hoax. The populist president sees the pandemic as a fairy tale despite its massive impact on the Brazilian economy. In the first quarter of 2020, the GDP decreased by 1.5 percent.
The Ministry of Economy created the Investment Partnerships Program. Its goal is to create additional jobs to offset the impact of the pandemic. Guedes approved the plan on June 19. Also, the ministry published it in the Official Gazette to disseminate the law. As a result, sports betting will be part of the National Privatization Program.
Sports Betting Industry Privatization
According to pay per head sportsbook sources, the Ministry called for the industry’s privatization to reorder the state’s position in the economy. The state will remain the primary beneficiary of the industry. However, it would not have any risks.
The license holders will carry the risks. Thus, the government would have the funds to spend on technology and other priority projects. The government will get revenue from taxes and license fees. Also, the Ministry is expecting foreign operators to enter the country after the privatization.
According to bookie pay per head reports, there are other attempts to legalize gambling in Brazil. Also, the country will come up with a method to protect the integrity of the games. The government will also use a monitoring system to prevent abuses.
At present, there are third-party services that can ensure integrity in sports. The Ministry of the Economy will be the regulator of the sports betting sector in Brazil. It will be in charge of granting licenses to companies that want to become a bookie in Brazil.