Bill No. 1822/2023, by councilor Pedro Duarte (NOVO), aims to make Rio a more competitive city. In addition to creating new jobs and investments, the establishment of bookmakers in the city would prevent the flight of qualified professionals to Sao Paulo.
According to Enrico Nazaré, betting specialists and content manager of the Apostas Brasil website, there are many positive points for cities from an economic point of view: “The first advantage is the collection, because according to federal legislation, companies will collect taxes (ISS) of all operations carried out in Brazil at their headquarters."
"The second major benefit is the generation of jobs. Companies will need marketing, technology, user support and various other services. Naturally, a good part of these jobs will be generated in the place where the company will set up its headquarters. The third point is development of this sports betting ecosystem, which means that more sporting events in cities will be sponsored by these companies, for example,” adds the executive.
Minister Fernando Haddad estimates that the regulation of online sports betting should generate a total collection of between R$ 2 billion (US$ 415m) and R$ 6 billion (US$ 1.25b) for the public coffers: However, Enrico believes that it is a little difficult to predict this value: “Talking about values in this market It's quite complicated because there are so many variables. The ideal is to wait for the final text of the PM and analyze it. If federal regulation is bad, the amount in dispute will be less. If it is good, it will be bigger.”
Enrico also considers that, before deciding where to headquarter in Brazil, online bookmakers will evaluate marketing aspects: “In addition to tax issues, such as ISS and other taxes, bookmakers will define where they will headquarter in Brazil considering the strategic market. If the business has national or regional pretensions, it will use existing talent in the region, if there will be ease of technology, supplies and services. The definition of the host city will necessarily go through these discussions. Like any other business, these variables must be considered before the final decision,” he concluded.
The Ministry of Finance has been working to publish a provisional measure (PM) with immediate effect, which would help streamline the sector's regulation process. However, the mayor, Arthur Lira, demanded that the matter be dealt with via a Bill.
The change in plans frustrated the team that Fernando Haddad assigned to write the PM. The effects of the provisional measure would be immediate and would allow the ministry to implement control and collection mechanisms before the text is validated by Congress.
While the regulation does not happen, bookmakers continue to offer their services and products in the country freely, without any type of restriction or taxation by the Federal Government.
Source: GMB
