Brazil to Privatise Online Sports-Betting SOUTH AMERICA
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247.COM
Brazil's interim President is looking at ways to legalise online betting and instants run by the largest state owned bank - the Caixa Econômica Federal (CAIXA)
Brazil’s government is to allow foreign companies to work in partnership with CAIXA to operate sports betting
BRAZIL SPORTS-BETTING
Brazil's interim President Michel Temer is looking at ways to legalise online betting and instants and allow foreign companies to work in partnership with CAIXA to operate sports betting. Te privatisation of instants would be a logical step as the government takes an increasingly liberalised stance on gaming. According to government sources, the privatisation of instant tickets would generate revenue of between R$2.2bn and R$4bn a year while annual revenue for the government would stand at around R$1bn.
Under present plans now being studied in the Ministry of Finance, and already under way before impeachment proceedings began against Dilma Rousseff, a private company would be permitted to develop the business after an initial public offering (IPO) or after a licence tender process was carried out. While CAIXA would still retain the monopoly over lottery gaming the complete operation of instants would move to a single company or consortium of private companies, which can be made up of both national and international companies.
Meanwhile, online gaming under current plans now being developed by the Ministry of Finance
Argentina
Tree Casinos to Close in Mendoza
Te government of Mendoza has decided not to extend the concession of at least three casinos in the province because they are not meeting the gaming board’s objectives of attracting tourism and generating income. In fact according to the latest statistics gathered by the local gaming board, the casinos are now losing money. President of the Provincial Institute of Games and Casinos confirmed the closure of the casinos in the cities of Uspallata, La Consulta and Eugenio Bustos.
Te official said that the three state casinos had not met with the objectives initially envisaged by the authorities, which was to attract tourists and raise revenues. However, after a study, it was revealed that rather than being a draw for tourists from other provinces or countries the casinos were instead attracting locals.
would be restricted to sports betting. Licence holders would be given the right to run online sports betting for ten to twenty years in order to maximise resources gathered for the state.
Te news comes at a time when the Senate is poised to vote on a new gambling act. Ministers for Brazil’s interim president, Michel Temer, will continue with plans to legalise gambling in order to increase revenue for the state and gambling has been earmarked amongst three other major policy changes as an urgent priority by the President of the House, Senator Renan Calheiros. Te new act, however, does not address the issue of online gaming.
Brazil offers a huge and as yet untapped market when it comes to sports betting. Sports betting remains banned under Brazil’s gaming laws and the only legalised form of sports betting (apart from a small number of Codere horse race betting shops) is via lottery type games offered by CAIXA. Tis is nowhere near enough to meet demand and Brazilians have been tuning to offshore gambling sites in increasing numbers. Although online gambling is currently banned in Brazil it is estimated that Brazilians gamble around US$600m a year via offshore sites.
In addition it was revealed that the casinos were making significant losses. As a result workers for the casinos will be laid off or relocated to other state run casinos in the province. Te decision was made after talks with the mayors of the three cities where the casinos are located as well as the chamber of commerce after a study was carried out on the impact of casinos on local communities.
Head of the Institute of Gaming Josefina Canale said: “After paying prizes and costs the casinos made a loss.” Te head of the Provincial Institute of Games and Casinos made the announcement June 24, and said that the licences will not be renewed on August 24 when they are set to expire, while in March next year two more casinos located in the cities of Tupungato and Tunuyán could also close. However, although there is no official word on the subject, it is believed that the privately run casinos in the province, which are currently operating at a profit, will remain open.
Uruguay
Te Undersecretary of Economy and Finance Pablo Ferreri, has reaffirmed the importance of the State monopoly on gambling and betting. Ferreri said that a new bill now under consideration in parliament will restructure gambling and casinos and strengthens the state monopoly over the industry. According to the draft of the new law, the government seeks to create a new governing body called the National Management of State Gambling and Casinos, which would exercise state control over all types of gambling. Te new proposals also seek to create a new Betting and Gaming National Comptroller’s Office, which would be responsible for the supervision of the quality of accounting and financial reporting of State Lotteries.
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