MIÉ 27 DE NOVIEMBRE DE 2024 - 08:33hs.
Rodrigo 'Loco' Alves, Abaesp presidente and Eightroom head of content

“Lottery tax rules do not apply to sports betting”

In an exclusive conversation with GMB, Rodrigo 'Loco' Alves, president of the Brazilian Association of Sports Betting - Abaesp and head of content at Eightroom, highlighted the importance of regulating sports betting but that it needs to be reviewed to give more voice to bettors and so that the issue of taxation on whom to bet is reviewed. For him, “the lottery rules are not good” for the activity.

The Brazilian Association of Sports Betting - Abaesp was created in 2019 by a group of gamblers interested in having a voice in the sector’s regulation process, shortly after the enactment of law 13,756/18. As only operators, service providers and other businessmen in the field participated in the discussions on the subject, Rodrigo 'Loco' Alves and 16 other professional gamblers founded the entity with the aim of being heard as end consumers of the activity.

One of Rodrigo 'Loco' Alves's concerns is about matching sports betting with other lotteries in Brazil. “It's not the same thing, especially with regard to gambler taxation,” he commented in an exclusive conversation with the GMB.

GMB – How did professional bettors view the draft presidential decree that regulates sports betting in Brazil?
Rodrigo 'Loco' Alves
– There is the recreational gambler and there is also a high professionalism bias in a risky activity for variable income in betting and an event like Bet Masters shows how there are techniques and methods and how sports betting stands out and differentiates itself from other lotteries. So, for the professional gambler who works with it on a daily basis, lottery rules don't work. They are of no use to them. It would be important for the activity to be observed in a more individualized way, but it is still not possible to say much until we know what the rules will be like.

It's a complete ecosystem, with bettors, punters, tipsters, traders and operators. The entire chain is waiting for regulation...
Of course yes. Everyone waits for regulation, including in the governmental and political spheres. This expectation becomes an anguish. It is already understood that everyone wants a well-done regulation and we have many successful models abroad that serve as a guide for us. Brazil has the unique opportunity to create its own well-designed regulation, following the good models from abroad, but adapted to our reality and characteristics.

Has Abaesp, which represents the bettors, had a good approach to sports betting operators?
Both punters and operators welcome the association's work, which is discreet. We don't want a platform, just have a voice. So, as our claims are in line with good industry practices, operators support, like the GGR, unlimited number of licenses and the issue of gambler taxation, which can be a shot in the foot of licensed houses as they will be able to resort to the houses off-shore. So, we have a great synergy in what we believe in.

How has the association seen the issue of federations and leagues being able to audit bookmakers and each having to pay image rights?
It's not every day that new news comes out, but every two weeks something new comes out. This bill brought this power to confederations to allow or deny an operator to offer quotas for the modality or certain event. More than that, being able to go in, audit the bookmaker to see if that bet could be made. It is a very great power that is being given to confederations, which do not even have the structure for it and it is not the purpose for which they were created. I have never seen anywhere in the world a confederation being able to allow or deny an operator to offer bets.

It has to be something democratic, available to everyone..
Exactly. There is no reason to have this limitation, give this power or put an intermediary in front of a bookmaker offering odds. We are talking about sports, but it could be in the area of entertainment, for example. At a TV or political event would someone have to give any authorization? I don't understand that this is the correct way.

Source: Exclusive GMB