The subject of the moment has been the regulation of sports betting in Brazil and the promise that such a specific rule will be published later this year. The expectation surrounding the regulation of this activity must be received in a conscious and practical way, taking into account the current scenario and the potential impacts that the entry into force of specific regulations can generate for the sector.
The sports market in Brazil, especially football, is marked by the passion and commitment of the fans.
The fans' passion crosses barriers and generations, creates inseparable bonds and is capable of transforming football into a hyper-profitable product. It's the fans and their passion that turn a game into a product with unbelievable marketing reach, and football, an industry that moves overwhelming figures.
It is not surprising, therefore, that sports betting operators have a great target in the Brazilian market, especially football.
Even before the legalization of betting, they were already investing in advertising here in the country and one could already see, albeit discreetly and indirectly, the presence of these brands in the commercial breaks of matches and championships. This advertising was aimed at statistics sites, and not, properly, betting sites.
As of December 2018, when Law nº 13,756 legalized this activity – albeit under the specific modality of lottery betting by fixed odds, an exclusive Union service that can be granted or authorized to private entities –, the market, in a way In general, he felt more comfortable “welcoming” these companies, which began to appear on the teams' shirts, as sponsors, on the lawns and more ostensibly in the media.
From the perspective of sports clubs and entities, their interest in maintaining betting operators in Brazil seems obvious, as investment by these companies in the country has been increasing, and championships and teams that previously did not generate interest in the big media conglomerates have now proven attractive to betting platforms.
The performance of these platforms in the country is just one more change in the sports market, which, along with many others, brings new business possibilities not only for big and small clubs, but for various sectors of the economy.
For example, if before there was talk only of open TV exclusivity, shortly afterwards, closed TV, pay-per-view, streaming platforms and, today, streamers and betting platforms appeared, which pulverize the audience and create new sources of revenue generation, whether via brand and image licensing, capture and production of game signals, technological development, use of artificial intelligence and many others.
That is, despite the lack of specific regulation, this is a market that has grown exponentially in recent years. What exists today is a legislative limbo that allows the exploration of the Brazilian market by sports betting operators based outside the country, but still without specific rules for compliance, data protection, advertising, tax, among others.
The regulation of this issue provides legal certainty and, consequently, a potential increase in business. Understanding the rules of the game, in any situation, brings predictability, the possibility of adaptation and, therefore, reliability.
However, these new rules must be viable and sustainable to attract and maintain the investments that have been made in the sector. Otherwise, the risk is of maintaining the current situation, namely, of companies headquartered outside Brazil exploring the Brazilian market supported by a legislative gap on the subject and of the new legislation becoming a dead letter.
Fernanda Meirelles
Partner in the media and sports area at FAZ Advogados
Source: Correio do Estado
