Yesterday, 11/20/2018, another important step for the legalization of sports betting in Brazil was overcome with the approval of the report of Provisional Measure 846/2018 by the Plenary of the Chamber of Deputies.
The next step is now the Senate Plenary vote, which we believe may occur later this week, possibly without major difficulties for approval.
We would also like to remind you that sports betting had already been approved at the time of Provisional Measure 671/2015 - The LOTEX Instant Lottery PM. At the time, then-President Dilma Rousseff vetoed parts of the text that legalized sports betting, continuing only provisions on Instant Lotteries. We believe that a presidential veto should not be repeated, given that there was great support from the Congressmen of the current legislature and also from members of the new elected government, which will take office in January 2019.
Even after it is approved, there will also be a need for the Ministry of Finance, through SEFEL, to decide how to start the operation of sports betting in Brazil. It can be seen that the models that can be adopted are three:
1) A model similar to LOTEX with a single concession for a single operator;
2) The transfer of the operation to Caixa;
3) The adoption of a model of multiple licenses by complying with certain requirements, whether limited to a certain number or not.
Option 3 seems to us to be the model more in line with what the new elected government stands for, following a more liberal and free market and competition incentive line.
Now, the interested parties must cheer and hope for the approval of the theme in the Senate Plenary, and also for it to be regulated quickly and in the best possible way for the Public Power and for the interested operators.
We make it clear that we have full confidence in the people of SEFEL, who are aware of the international sports betting market and who will certainly choose the best model to be explored in Brazil, both for operators, as well as for the Public Administration and bettors.
EDGAR LENZI
BETCONSULT’S PRESIDENT
