The law that allowed this type of betting in the country completes two years this month. In January of this year, the idea was for the rules to be finalized in the last month of March so that the product could start to be made available to the public this December. But that timetable was hit by the change in the government's assessment of how investors should enter the exploration of the new business.
Following the recommendation of the Attorney General of the National Treasury (PGFN), the portfolio decided to start using the concession model and no longer the authorization one, as was being thought out. This year, sports betting also became part of the PPI (Investment Partnership Program) and PND (National Privatization Program). Studies on the operation are under the responsibility of the National Bank for Economic and Social Development (BNDES).
In an interview with Valor newspaper, the undersecretary pointed out that the Ministry of Economy and BNDES must sign a contract to start studies in the next few days. “The regulation should be ready next year. In June or July,” he added. Marques Júnior minimized the impact of the delay in delivering the regulations, claiming that the most important thing is that the operation has legal certainty. According to him, Law 13.756, passed in December 2018, did not address some important points, such as the possibility of regulating penalties.
During the impasse, the team decided to consult the PGFN, which informed that the only sanction that could be applied in the authorization model would be the revocation. This could only be changed through a modification in legislation, which could further delay the process. The other option, which ended up being accepted by the government, was to adopt the concession model. The penalties will thus be included in the contract. "It might be better to take a while and get good regulation," he said.
The undersecretary repeated that the law approved in the country for the exploitation of the fixed quota is "average". A possible proposal for a change in legislation, however, will depend on the result of the technical studies that will be presented by the BNDES. Another point of the law that has received criticism is the taxation levied on the business, which, in Brazil, would be higher than that practiced abroad.
“It is not unfeasible”, he stressed. “We are approached by companies as they way it is [the legislation]. It is not a matter of urgency to change this point,” he said. From January to October, total government revenue from lotteries was R$ 13.37 billion (US$ 2.6bn), with social transfers plus Income Tax (IR) totaling R$ 6.5 billion (US$ 1.25bn). In 2019, the total collection was R$ 16.71 billion (US$ 3.22bn) and social transfers plus IR reached R$ 7.91 billion (US$ 1.52bn).
Marques Júnior also said that the recent decision by the Federal Supreme Court (STF) to release the exploitation of lotteries by the States will not reduce the attractiveness of the business. For him, the decision came “in good time” because it removes the insecurity that existed around the activity and can help the loved ones to leverage the revenues.
On the issue of a new decree to promote changes in the betting rules associated with horse racing, the so-called “sweepstake”, which was scheduled for the first quarter of this year, Marques Júnior said it is ready, but the calendar was also affected by the pandemic.
Source: Edna Simão e Mariana Ribeiro, Valor — Brasília
