According to the note, the initiative came from the National Consumer Secretariat and "intends to find out which companies have formalized contracts with the clubs, most of which are headquartered outside Brazil."
It is worth remembering that Law No. 13,756/2018 expressly provided for the legalization of fixed-odds bets (art. 29), although this rule was designed to promote changes in the National Public Security Fund and on the destination of lottery collections, turns out to be a veritable potpourri of changes in countless other laws.
In the aforementioned diploma (art. 29, § 3°), a period of 2 years (extendable for an equal period) was determined for the regulation of this new economic activity to be edited. Even after its edition, the Ministry of Economy opened a public consultation to collect suggestions from stakeholders and any citizen to establish a regulatory model for the segment. To date, there has been no regulation, although some drafts have been presented. The deadline is December this year.
Despite being considered a legal activity, there is no regulation yet, so, as is common knowledge, sports betting houses that operate in Brazil have their servers housed abroad. In other words, with this, a service is explored without collecting even a penny alluding to the taxation provided for in the law itself.
It is estimated that more than 500 bookmakers are in full operation in the country, producing a turnover in the orbit of R$ 7 (US$ 1.335bn), an attractive and very promising market, which today is without any regulation. And, it seems, the State has awakened…
The notification sent by the Ministry of Justice and Public Security asking for information about the contracts signed by clubs, federations and others with bookmakers is indicative of the beginning of a state movement of knowledge and control of the business environment that is formed.
In the specific case, perhaps, it may be questioned whether the notified would have a legal duty to present such signed contracts, since they were signed between legal entities whose existence in the country is allowed. In addition, there may be a duty of secrecy on the part of the parties.
The alternative found, it seems to me, was to address the issue from a consumerist point of view, acting as an advocate for fans. Yes, from the fan. After all, an elastic understanding of the limits of its concept allows such logic, based, frivolously, on article 2 of the Fan Statute - it states that a fan is any person who appreciates, supports or associates with any sports entity in the country and follow the practice of a certain modality.
In fact, it sounds more coherent that the State has been amazed at the magnitude of the economic potential of this market, its immense possibilities of generating revenue for the treasury and the opportunity for illegal acts to be committed, especially when there is no regularization, inspection and/or activity control. There is, in fact, concern about possible tax crimes, money laundering and those against the financial system.
Brazil has lost a lot with anomie in this segment and only now realizes that it needs to recover ground.
On the other hand, this interest of the State reveals that those interested in exploring the betting market must strive for good governance and integrity, seek to build the business supported by the rules of regency, since this will be an activity subject to control.
In turn, those who already exploit, as well as those who have contracts with them (clubs, TV networks, federations/confederations, etc.) must pay attention to the repercussions of such instruments, especially in relation to the image that will be passed on to the market.
Specifically, we experienced the first round between sports bookmakers and the State, and there are third parties who, despite being mere spectators, because they are so close to the battle, can be affected.
This notification is a step by the State wanting to learn to deal with this new scenario, passing through consumerist, penalist bias, in short, without knowing for sure how to deal with such complexity in this economic segment. Throw yourself in all directions, the risk is to hit the innocent.
Only, I think, that the players' passivity in anticipating more vigorous measures that may come may soon bring more and more bloody rounds, in the best style of disputes between Rocky Balboa and his antagonists!
Milton Jordão
Attorney; Master in Social Policies and Citizenship at UCSal/Bahia and Master's in Sports Law at the University of Lleida/ESP; director-treasurer of CAA BA, former OAB/BA Sectional Councilor; member of the Special Committee on Sports Law of the National Bar Association; member of the Sports Law Commissions of the OAB/BA and OAB/SE; president of the Sports Law Institute of Bahia (IDDBA); member of the Brazilian Institute of Sports Law (IBDD); president of the STJD of Judo and of the TJD of Karate in Bahia; former attorney at the STJD do Futebol; author of works and legal articles in the field of Sports Law. He writes in Lei em Campo in the column “Direito no lance”.
