MIÉ 8 DE MAYO DE 2024 - 02:03hs.
New draft of concessions presented

Brazilian government to start granting only 30 licenses to operate sports betting

The public consultation to collect suggestions for improving the Draft Decree regulating the exploitation of sports betting in Brazil and a first version of the draft were launched on the Ministry of Economy website. The event will count only with 30 (thirty) operators chosen through the due bidding process in the competition mode. “There was a need to adopt the concession as a way for legal operators to enter the country,” assures the Brazilian government. Download the new draft here (in Portuguese) to participate in the public consultation.

As in the text delivered to the market in September last year, in this new draft the Ministry also decided not to include the values of authorization fees, monthly fees and taxes on games.

After holding two public consultations on the regulation of the fixed-odds sports betting lottery, there was a need, due to peculiarities pertaining to the national legal system, pointed out by the Attorney General's Office, to adopt the concession in a competitive environment as entry of legal operators in the country, through the due bidding process in the competition mode.

The event will have the number of 30 (thirty) operators, estimated based on the monopolistic competition model designed by Dixit-Stiglitz (1977) and will be held in periods of 6 (six) months until the supply of the national market with such number- limit of companies operating in that activity or, in different cases, up to a period of 4 years after the first public bidding session.

In order to listen to the potential operating agents of this new lottery business market, in order to receive suggestions regarding changes to the text of the draft Decree, this new public consultation is launched.

Contributions will be received through the e-mail [email protected] and must be sent from February 17th to March 6th, 2020.

In order to clarify the concession process to be adopted for the exploitation of the lottery betting method of fixed odds, it should be remembered that the competition process develops, briefly, in the following terms:

a) publication of the main announcement for the disclosure of the competition;

b) receiving requests for clarification from interested parties;

c) responding to requests for clarification from interested parties;

d) delivery, to the Ministry of Economy, by interested bidders of the following documents: Bid Guarantee; Written Economic Proposal; and Qualification Documents of interested bidders;

e) Disclosure, after due analysis, of the list of interested bidders considered able to participate in the competition;

f) Opening of the Written Economic Proposals of qualified bidders;

g) Publication, after analysis of the Written Economic Proposals, of the order of classification of eligible bidders;

h) Publication of the Minutes of the Judgment of the competition, the date on which the term for filing appeals regarding the decision of the Granting Committee begins;

i) Finalization of the deadline for filing appeals on the decision of the Granting Committee;

j) Publication of the result of the judgment of the appeals against the decision of the Granting Committee;

k) Approval of the result of the competition;

l) Publication of the Granting Act; and finally,

m) Signature of the Concession Contract.

If a new effort is needed in the search to reach the optimum number of operating companies of the lottery mode, the process is repeated, every 6 months, from the publication of a public notice complementary to the main public notice of the competition, following the steps mentioned in points “d” to “m”.

Source: Games Magazine Brasil