Brazil’s Chamber of Deputies has granted provisional approval for the establishment of a new lottery organization for regulating gambling in both the online and terrestrial spaces. Its responsibilities will include regulation of the sector and distribution of gaming taxes to the country’s National Public Security Fund.

The creation of a formal regulator is expected to generate income of circa US$1bn. The proposal has still to pass muster before the Senate which was scheduled to meet before the start of Brazil’s Online Gaming Summit will takes place in Sao Paulo from December 3 to 4.

With the prospect of an official regulatory body at least in the offing, Brazil has yet to make progress in the sell-off of its hugely popular instant lottery, Lotex. The recent change in the country’s government has led to the delay of a proposed auction this week which will now be delayed until next February at the earliest.

The instant lottery, known as the ‘raspadita’ is one of the most successful gambling products in the entire continent and is presently the only legal game of its kind in Brazil. This latest postponement marks the third delay in its highly publicized sale.