Brazil President Jair Bolsonaro has signed off on Decree 10,467, paving the way for a regulated sports betting industry in the Latin American country. The decree, included in the Official Gazette, establishes that the National Bank for Economic and Social Development (BNDES) and the Ministry of Economy will be in charge of managing the privatization of sports betting.

The gambling modality will be included in the Investment Partnerships Program (PPI), through which the State seeks to attract the private sector to operate these businesses.

The decree, signed by Minister of Economy Paulo Guedes, sets out that the ministry will coordinate and monitor the privatization process. It will also carry out studies and execute the bidding process for the concessions.

On the other hand, the BNDES will be “responsible for the execution of the privatization process.” The entity will report the progress to the Council of the Investment Alliances Program of the Presidency of the Republic and other relevant organizations.

Currently, the PPI portfolio includes 158 projects, with 13 different policies to carry out the privatizations, which don’t have a specific date but are part of a government process, according to Special Secretary of the PPI Martha Seillier.

The interest around football in Brazil has attracted a number of international operators seeking to establish their brands in the region in the face of the imminent regulation of the sports betting vertical. Such is the case of Swedish giant Betsson, which acquired a 75% majority shareholding in Brazilian operator Suaposta back in December 2019.

Speaking to SBC, Andre Gelfi, Managing Director of Betsson Suaposta, described the decree as “an important milestone in this process”. He added: “It basically ratifies the regulator’s plan and its timeline. It’s a formal step in the administrative process and I believe that it’s a demonstration that it is now on a different scale.”

“This is a government’s project and it’s reflected in the presidential decree. This is very positive.”

The potential inherent in such a vast market has already led companies to sign sponsorship deals, and currently 14 of the 29 teams in Brasileirão Série A are sponsored by sports betting operators.

In addition, according to a report by local media Estadão, there are approximately 450 sites specialized in sports betting operating in Brazil.