Galera.bet and other players in the market are waiting for the so-called regulation of the sector, promised since the end of 2018, when former president Michel Temer signed a law that allows these companies to operate. The next step, that of the rules of the game, spent the entire administration of Jair Bolsonaro stuck in the field of political negotiation.
In recent weeks, the Minister of Finance, Fernando Haddad (PT), has determined that his portfolio will establish, through a Provisional Measure and successive ordinances, what can and cannot be done in the segment, which moves R$ 15 billion (US$ 2.9b) a year, but it does not generate a cent of tax to the federal government.
In the following interview, Sabiá, whose company sponsors the Brazilian Football Championship and games of the Brazilian Basketball Confederation, talks about the company's activities and the positive impact that the regulation will have on the market.
Veja - How do you assess the need for the betting sector to be regulated in Brazil?
Marcos Sabiá - The large groups that operate in Brazil are under a law that authorizes them to operate, but we have a legal limbo. There is great concern from companies to operate here because of uncertainties, lack of taxation and regularity. That's why they work out there. Galera.bet is headquartered in Curaçao [in the Caribbean] due to our concern to be in a place that has legal security.
Will regulation change this picture?
Yes, of course. When we have the regulation, we will invest more in Brazil. We will bring technology structures, which will be important for job creation and knowledge transfer. We want a long-term relationship with the country.
How big is Galera.bet in Brazil today?
We started in January last year and today we have 2.5 million users on the platform.
The Lula government intends to charge a grant of around R$ 30 million (US$ 5.75m) so that the companies can operate. This amount will reduce by up to 90% the number of sites operating in the country. Estimates range from 1,000 to 4,000 companies. Is the possible reduction good or bad for the market?
The market needs to break paradigms and has to demonstrate that the ruler will bring good operators, who can respond to the challenges. There must be companies that have good faith, but that have the technical competence to do so. It is important to have balance in order to have competition and, with that, benefit users. But it is also important not to have very strict rules, killing the segment in its infancy and creating a parallel market.
One of the biggest hurdles the gaming industry in general faces is the issue of money laundering. The Lula government intends to create mechanisms and clear rules to combat this type of crime. Is it enough?
The fight against money laundering is an important issue and we also need to fight the stigma that may exist in relation to it. Whether demonstrating governance standards or discussing illicit and wrongdoing. Legislation needs to reflect all of this. And that's what we expect from it.
Source: Veja
