Lately, there is no talk of anything other than the regulation of the betting and gaming market in Brazil. The process is in full swing and has already passed through the Chamber of Deputies, Federal Senate Committees and is on track to be approved soon.
Although this is a complex topic that gives rise to several analyses, I think it is important to put my point of view here, as a professional who is not a gaming operator, but who works very closely with these market agents.
One point is certain: regulation needs to happen in Brazil to create, once and for all, a unified, consolidated and professionalized market, as occurs in different parts of the world.
However, the way this regulation has been designed so far is not very favorable to companies, that is, operators in the sector.
We can even say that the way the market has self-regulated since President Michel Temer enacted Law 13,756/2018 in 2018, which made sports betting legal in the country, under the condition of adherence to the adoption of fixed quotas for them, has been much better than what has been claimed today in political spheres as complete regulation.
I say this because companies that are operating in Brazil, but still have their headquarters outside the country, have moved the sports sponsorship market, providing a new form of entertainment for the betting public, investing in influencers and digital marketing, which has already It has been generating a lot of jobs here.
In other words, I say that it is clear that the market needs to have regulated, documented practices and these taxes need to stay in the country. But we need to think more about business viability.
Gaming operations need to be viable to be able to pay taxes
I am constantly at games market events around the world, and I know regulations implemented in other countries with great success, I consider it an honor that Brazil is increasingly in the spotlight, being the hot topic in the segment, arousing interest of companies from all over the world.
Therefore, we have to take advantage of this growth and this radar of the world here to be truly viable for operations. With what I've seen, we could become the most expensive market on the planet for companies in terms of taxation, which will inevitably drive away many companies that are super interested in operating here.
The issue of regulation must be better debated to adjust some points, also allowing the arrival of good financial results for operators.
I repeat that it is essential to collect taxes that are returned to Brazil, have legal security and all the positive things that a regulated market brings, but it is essential that more discussions are held in order to also guarantee the success of companies in the sector.
Gaming operations need to make a profit to pay taxes. Without revenue, they are unable to meet their obligations. I'm super in favor of regulation, however, a lot can and should be improved so that the market is healthy for all parties involved.
Betting companies have employees, offices, and with the boost of regulation, many more jobs will be created here in Brazil.
Therefore, it is important that legislators do not create barriers, and encourage an attractive market full of opportunities for more and more companies to regulate themselves and come to Brazil. If the rates are impractical, this could end up driving operations away from our country.
And, companies from different parts of the world really want to come to our country! Did you like the topic Then contact me.
André Vinícius de Alencar Alves
Director of Control F5
