Lottery stores also showed interest in the regulation of sports betting. The president of the Brazilian Federation of Lottery Companies (Febralot), Jodismar Amaro, said that lottery retailers are looking for participation in the online segment.
"As soon as the provisional measure comes out, we are going to start with a project to seek participation, so that the lottery outlets are inserted and we can also offer this type of service. There are 13 thousand points of sale in Brazil, we already have the network ready and we want to be inserted in some way," he said.
Febralot's objective is to enter into discussions on the subject when the Provisional Measure (PM) comes out and presents an amendment to the text that will be released, according to the Minister of Finance, Fernando Haddad, as soon as President Lula returns from a trip he will make to China from the March 26th.
Minister Fernando Haddad's decision to implement sector regulation as soon as President Lula returns from China is moving not only sports betting operators, but also the lottery segment.
The law in force only provides that applications can operate in the country as long as they are headquartered abroad, do not have physical points of sale and operate in international internet domains. The new regulation will require companies to be headquartered in Brazil - as they are currently located outside the country -, improving inspection, collection and dialogue with agents operating in the sector.
With a network of 13,000 retailers and penetration across the country, Febralot understands the great reach that the permission for lottery houses to offer sports betting would give to the activity, democratizing the offer of the modality and increasing the income of lottery retailers.
With the regulation approved, the expectation presented by analysts is that the sector will have gains in collection of around R$ 20 billion (US$ 3.8b) in annual revenues, generating R$ 6 billion (US$ 1.14b) annually in taxes.
Source: GMB
