The Provisional Measure (PM) that deals with the regulation of the sports betting sector is close to being dispatched by this Friday (21st) in the most urgent areas. Among them, the taxation of the activity and the definition of sanctions for betting companies that do not comply with the rules.
After the recess of Congress, the idea is to work on a Bill to deal with thornier issues, such as processes for applying sanctions and the structure of taxation.
The government's forecast is to raise more than R$ 6 billion (US$ 1.25b) per year and return with some initiatives, such as Lotex, an instant lottery known as "raspadinha” (scratch card). In an extra edition of the Official Gazette of Tuesday (18th), the PM creates positions for the new Secretariat for Betting and Lotteries, within the scope of the Ministry of Finance.
Betting sites and bookmakers in Brazil
According to Fabiano Jantalia, founding partner of Jantalia Advogados and specialist in Gaming Law, the regulation of economic sectors, such as sports betting, is not a government issue, but a State issue.
“The government, it seems, is apparently basing itself on the premise that most sports betting operators will settle in Brazil. For this, the Regulatory Framework needs to be minimally inviting and have a structure of incentives for agents that is feasible,” points out the lawyer.
For him, the regulation will also contribute to the security of the gambler, since the bookmakers will have to settle in Brazil.
“In this scenario, bookmakers, mostly virtual, explore the Brazilian market from their operations abroad. This also creates difficulties for the gambler. If there are no practical restrictions for him to place bets on these sites, there are limitations in case he is injured,” says Jantalia about the need to protect the player.
He reinforces that “the country loses, which cannot collect taxes. And loses the consumer, who has no one to turn to. For you to file a lawsuit, you will need to indicate an address, a legal representative, a headquarters, a CNPJ, and even if you locate someone, you will also need to have assets to be executed.”
Fiscal balance, job creation and earnings manipulation
Sports betting moves tens of billions of reales a year. With the regulation, the estimate is more than R$ 6 billion (US$ 1.25b) per year, bringing fiscal balance to the country and possibilities for job creation within the sector.
“Without regulation, the government is prevented from raising resources that are important from the perspective of fiscal balance, but also in the provision of instruments that minimize and monitor match-fixing, pathological gambling and money laundering,” points out Tiago Gomes, partner at Ambiel Belfiore Gomes Hanna is a specialist in Gaming and Betting Regulation.
Transparency and security
More than benefits for the State and for bettors, the regulation also promises a more favorable environment for the operator of the sites and bookmakers, as explained by Tiago Gomes.
“This happens because it becomes more transparent as to the requirements to legally operate in the country, objectively marking out those who can continue operating and those who, because they do not meet the requirements in the regulation, will not be able to do so,” he concludes.
Fabiano Jantalia
Founding partner of Jantalia Advogados and specialist in Gaming Law
Tiago Gomes
Partner at Ambiel Belfiore Gomes Hanna Advogados and specialist in Gaming and Betting Regulation.
