The R$ 12 billion (US$ 2.35b) reported for this year represents an increase of 70% over 2020 revenues only in gaming and video games, according to research and analysis of data from the sector. Brazil already occupies the 12th position in the world in the gaming segment and continues as the largest market in Latin America.
The potential to grow is even greater when considering the lack of specific rules for gaming and betting modalities (such as sports or fixed-quota) and illegal gambling (such as those based on the element of luck – the case of bingos, casinos, jogo do bicho, among others). According to industry estimates, illegal gambling move at least R$ 27 billion (US$ 5.3b) per year.
With the regulation of the different modalities, discussed in at least five bills, it is expected that companies that operate in the betting market and are based abroad (on websites hosted on servers abroad), in jurisdictions where bets are regulated and legal, can generate foreign currency to the country.
Unpublished work
With a multidisciplinary team of professionals, Demarest has prepared a manual with information on the various modalities of games and bets – allowed or prohibited by sparse laws that address different topics – and the different draft laws in progress, which seek to create rules and enable the exploitation of some types of games and bets in Brazil.
The work brings together in a single document the main regulations and projects of the sector, besides facilitating the understanding of the modalities that may or may not be offered in Brazil, to avoid risks to domestic and foreign investors.
It also addresses aspects related to intellectual property and the LGPD (General Law for the Protection of Personal Data or Law No. 13,709/18), in force since 2020 and that brought rules for the processing of personal data, including applied to digital media (such as games and electronic games).
"Knowing and understanding the discussions and what's to come will be an advantage for investors in the industry, who will be able to identify business opportunities," says Monique Guzzo, a lawyer in The Regulatory and Public Law areas of Demarest.
"It is a market that has grown exponentially in recent years, although there is still a lack of regulation and have some modalities of games even banned. Therefore, the legislator has to be in mind that the new rules need to be viable and sustainable to attract new investments. Otherwise, the current structure of this sector will remain, with companies based abroad exploring this market in Brazil. And the new legislation will run the risk of being 'dead letter'," concludes the lawyer.
Impacts
The regulation has economic impacts that involve not only tax collection and job creation, says Tatiana Campello, partner in The Intellectual Property, Technology & Innovation and Privacy, Technology & Cybersecurity areas of Demarest.
"It also brings opportunities in brand licensing, technology, the development and use of artificial intelligence, and aspects related to intellectual property." She also points out that attention needs to be paid to the issue of privacy and protection of personal data of players or bettors.
For Fabyola Rodrigues, partner in the areas of Corporate Criminal and Compliance, "it is essential that the legislator regulates the modalities of games, bringing security to investors and consequent growth of the market. If not, casinos would be banned around the world."
She points out: "We need to dissociate that games are always related to money laundering, as well as combat the aspect of negative and harmful moral burden."
By considering these aspects, companies that already operate and those that want to enter this sector, online and offline, will be able to act more effectively and within legality, experts say.
The manual is an unprecedented work in the legal market, with the objective of analyzing the legal framework of the gaming and betting industry. It will be updated periodically, as the regulation of the issues brought in the bills and legislation of the sector advances.
The companies and lawyers of the areas involved in the subject are available for interviews and to explain more details of the manual, which can be downloaded for free here in Portuguese and here in English.
With more than 70 years of history, Demarest is one of the most respected law firms in Brazil and Latin America, a position that is reinforced by rankings of a variety of publications, including Chambers, Thomson Reuters, Latin Lawyer, The Legal 500 and IFLR. With addresses in São Paulo, Rio de Janeiro, Brasilia and New York, it offers legal services with the highest standard of quality and excellence.
Demarest is recognized as one of the best places to work with the certification conferred by The Great Place to Work®, an institution that has also certified it as one of the Best Companies in Brazil for Women to Work on. This year it was also recognized by the More Diversity Institute, in partnership with the LGBTI+ Forum for Business and Rights and Rights Campaign Foundation (HRC), as one of the best companies for LGBTI+ professionals to work for.
Source: GMB
