Formalizes “Fixed Odds Betting” lottery service to include in the PPI portfolio
Presidential Decree 10.467/2020, released on Wednesday (Aug 19), formalized the classification in the Programa de Parcerias de Investimentos – PPI (Investments Developments Programme), and the inclusion in the National Privatization Plan (PND) of the lottery service “Fixed Odds Betting”, better known as “sports betting”, which is an exclusive public service by the Brazilian State that now can be transferred to the private sector through concession or authorization process.
With the reclassification of this service in the PPI portfolio and in the NDP, a deadline will be set for studies to be carried out to choose the adequate privatization project model. The initiative helps expand investment opportunities, stimulate the economy, increase incomes and create jobs in the country.
Waldir Marques Jr, Undersecretary of Prizes and Lotteries at the Ministry of Economy, said, “This Decree is a major step forward in regulating fixed odds sports betting (Sports Betting). We’re working hard to make sure the industry is regulated soon. It is not an easy task. We aim to have a regulated sector with the best practices around the world, with corporate social responsibility, security for consumers and operators and integrity in sports.”
One of the privatization models that can be adopted is the concession of the service in the same way that has already been used in the successful tender of scratch card product LOTEX, held in October 2019, which was awarded to the Italian-American consortium made up of IGT and Scientific Games, generating projected revenue to the State of R$817.9 million (US$ 147 million).
The decision to include the service in the PPI portfolio was discussed during the 13th IBP Board Meeting held on 10 June this year.
