SÁB 23 DE NOVIEMBRE DE 2024 - 05:21hs.
Awaiting vote on the Senate

Fantasy games regulation moves forward in Brazil with law that disassociates the gambling sector

While Brazil’s federal government awaits the advance of the CPI on betting to define whether the sector will have its rules established via bill 2796/2021 or provisional measure (PM), which creates the legal framework for the electronic games industry and for the fantasy games, is already awaiting a vote in the Senate plenary.

A second screen in TV broadcasts refers to the use of additional devices such as smartphones, tablets or laptops to complement the television viewing experience.

During sporting events, this new window has been increasingly disputed by sectors that still do not have regulations in Brazil, such as sports betting and fantasy games, markets that have football as the backdrop and are in different stages of the processes of definitions of laws and norms for operation in the country.

While the federal government awaits the advance of the CPI on betting to define whether the sector will have its rules established via bill 2796/2021 or provisional measure (PM), which creates the legal framework for the electronic games industry and for games of fantasy, is already awaiting a vote in the Senate plenary.

The proposal explicitly excludes slot machines and the like from the definition of electronic games. It will be up to the State to make the indicative age classification of the games, but authorization will not be necessary for the development and exploitation of the games. The promotion of disputes involving users is also free, including the distribution of prizes.

On the last 6th, the text that has already passed through the Chamber of Deputies was also approved by the Economic Affairs Commission, where it was processed under the rapporteurship of Senator Irajá (PSD). Now it can receive any amendments from senators. If, however, it is approved without changes, it will proceed to presidential sanction.

The proposal was well received by the sector, above all, for disassociating it from so-called gambling, including sports betting. To the report, the senator from Tocantins stated that the text may be voted on before the July recess and that it must be approved by the Plenary. "Approving the CAE was a good thermometer. There was no type of divergence of merit."

In a fantasy game, each player takes on the role of a coach and creates fictional teams made up of real athletes from a given sport. Each squad is formed according to a virtual budget and all participants compete against each other based on the performance of those players in real events.

In addition, in fantasy games in general, there is competition and interaction between players on the platform, such as the creation of a league of fictional clubs, in which there is a dispute between players to define who reaches the best scores in each round and season. entire.

Based on this definition, market platforms, specialists and industry representatives define fantasy games as skill games, as the performance of participants would be predominantly determined by technical and analytical capabilities.

"Strategic skill, sports knowledge and the ability to analyze data are fundamental to stand out and overcome other competitors," says the vice president of ABFS (Brazilian Association of Fantasy Sport), Lucca Baldassarini.

For Marcelo Mattoso, a lawyer specializing in the games and eSports market, from Barcellos Tucunduva Advogados, "just like in poker, for example, the player's ability to understand the scenario of that Fantasy takes precedence over luck."
The understanding is also shared by the rapporteur of the bill, according to which, after the analysis of its technical team, "it became clear that electronic games and fantasy games have nothing to do with gambling."

The ABFS vice-president also adds that another significant difference is related to the form of awards in each sector. "In fantasy games, the minimum prizes are pre-defined and there is no variation according to the number of competitors. In sports betting, the prizes can vary throughout the sporting event, depending on the number of participants and the course of the match."

According to the entity, the fantasy market moved more than US$ 1.5 billion in South America in 2022. With the regulation in Brazil, the expectation is that this number can reach the mark of US$ 2.3 billion per year.

In addition, the guidelines will "bring more legal certainty to operators, consumers and investors in the sector, with a clear definition of the classification of the modality and definition of specific rules," says the lawyer specialist in Gaming Law Filipe Senna, partner of the Jantalia office Lawyers.

Currently, the two largest Brazilian companies in the sector are Cartola FC, from Grupo Globo, and Rei do Pitaco, co-founded by Matheus Dantas, currently the CEO of the startup.

According to the entrepreneur, the main source of revenue for the platforms is the collection of monthly fees for players to have access to virtual competitions or through a registration fee for a dispute. On the other hand, companies do all the organization and maintenance of virtual tournaments.

"The platforms act in a similar way to the CBF when organizing a soccer competition," says Dantas. "The return to the participants is the same as in a football championship, that is, it rewards the best in the competition. The first placed receive prizes defined before the beginning of the championships."

Defender of regulation, the businessman also believes that the definition of clear rules for the sector should increase competitiveness. "Only with clear guidelines will companies, mostly startups, be able to accelerate their growth."

Contacted, Cartola's advisory did not respond to the report's questions until the conclusion of this text.

Source: Folha