LUN 25 DE ENERO DE 2021 - 03:31hs.
Request to the Minister of Economy

Brazilian Senator asks government to explain privatization of sports betting

Senator Jaques Wagner (PT-BA) submitted a request asking Brazil’s Minister of Economy to point out the benefits of including sports betting in the National Privatization Program (PND). He asks Paulo Guedes for explanations that justify the transfer of the modality to the private sector, removing the management of Caixa Econômica Federal, which already has a consolidated expertise and operational structure.

“Such an initiative is based on the erroneous premise that the transfer to the private sector of activities carried out by the State is always and in any circumstance beneficial to society. It is the demonstration that, in reality, the alienation of certain services is detrimental to the well-being of Brazilians, because in addition to giving up a surplus activity, it brings a concrete risk of cannibalization of the collection of federal lotteries,” he stressed.

“We will have a consequent shrinkage of the installments due to its legal beneficiaries, who are already so lacking in resources. They are Social Security, the National Culture Fund, the National Penitentiary Fund, the National Public Security Fund, the Brazilian Olympic Committee and the Brazilian Paralympic Committee,” added Wagner.

In his request, the parliamentarian also questions what will be the authorized or granted term for the exploration of the fixed-quota lottery, the estimated collection of the modality in the next five years and what will be the reduction of the other federal lotteries as a result of this initiative.

In these terms, Wagner asks:

1. For what period will the authorization to operate the lottery service of the fixed-odds betting mode be authorized or granted?

2. What is the estimated collection rate for the fixed-odds lottery in the next five years?

3. What is the estimated collection rate for the fixed- odds lottery modality during the term of the authorization or concession?

4. What is the estimated reduction in the collection of other federal lotteries as a consequence of the entry into operation of the fixed- odds lottery?

5. What is the financial justification for divesting the lottery service from fixed- odds betting to private initiative, in light of the fact that lottery services are surplus and that CAIXA already has expertise and an operational structure consolidated in its management?

Source: GMB