The Ministry of Finance's plan is to give companies operating in this market a period of 180 days to present all the necessary documentation to regularize their operations in Brazil.
The Ministry, in turn, should have a period of over 30 days to respond to requests made by the company.
If these deadlines – which are still in the planning field – are all respected, it means that in 2024 the market will be regulated. And it will be very different from what it is today, with dozens of companies operating in Brazil, but headquartered abroad.
According to sources heard by ge, the revelations of the operation “Maximum Penalty”, which identified suspicions of manipulation in Serie A games in 2022, only prove how urgent it is to regulate the situation of sports betting in Brazil.
The operation led by the Public Ministry of Goiás arrested three people accused of bribing players to generate bids (such as corner kicks and yellow or red cards) in Brazilian Championship games and several state matches. Knowing what would happen in the games, they made millionaire bets. Offers to athletes ranged from R$ 50,000 (US$ 10,000) to R$ 100,000 (US$ 20,000) per match, said the MP-GO.
R$ 30 million (US$ 6m) license to operate
In addition to complying with a series of requirements – such as a 15% tax on profits – companies interested in operating in Brazil will have to pay a R$30 million (US$ 6m) license fee. In the opinion of people with knowledge of the situation heard by ge, this should reduce the number of companies operating in this market.
This is precisely one of the concerns of the clubs, who last week went to Brasília to present their points of view at a meeting with technicians from the Ministry of Finance.
The directors stated that the sector generates R$ 3 billion (US$ 605m) per year in sponsorship and made it clear that they fear losing part of that money with the regulation.
The directors heard that the regulation will create clearer rules that should allow the entry of other "players" in this market, currently absent, and that this could compensate for an eventual loss. And that this is a market contingency, in which all other sectors of the economy pay taxes and that sports betting cannot be an exception.
The government also responded at the meeting that the elastic period of 180 days to adapt to the new rules (plus the 30 days provided for the government's own response) will allow all contracts in force in 2023 to be respected.
The clubs were to return to the Ministry of Finance this week. But the meeting that was scheduled for this Tuesday (18) was postponed. Although the text of thePM is already well advanced, the government does not want to convey the impression that it is resolving the matter without consulting all interested parties.
Source: GE / GMB
