A text to regulate sports betting, presented by the Ministry of Finance in May, was stagnant due to disagreements between the presidents of the Chamber and the Senate. The solution found was to edit an PM with the priorities for the regulation and taxation of sports betting and a bill with organizational aspects. Proposals should be published or sent to Congress shortly.
This Provisional Measure will address what is legal and illegal in sports betting, punishments for disrespect and taxation rules, while the PL will include general concepts and functions of ministries. The measure will also implement mechanisms to prevent irregularities in the sector, prohibiting athletes, referees, sports officials and minors under 18 from placing bets.
An important fact brought by specialists in financial operations focused on online games is about important points that still do not appear in the texts, and considered of paramount importance for the creation of a healthy and sustainable gaming environment in Brazil, and in line with the best practices present in more mature and regulated jurisdictions.
According to Cristiano Maschio, CEO of Qesh IP, a payment institution authorized by BACEN, which is at the forefront of facilitating operations in the emerging online gaming sector in Brazil, the first of which is about player registration.
"We are talking about the importance of a safe and efficient onboarding process, with the proper application of 'Know Your Customer' (KYC) measures, to identify and verify the identity of users, prevent fraud and money laundering. Thus, the platforms will prevent minors, as already mentioned, PEP (politically exposed persons), false CPFs or those of deceased persons," he explains.
The second point raised by the expert concerns a system of withholding taxes and fees at source for the 'Guarantee of Destination', so that governments, municipalities and tax authorities receive adequate revenue directly. "This helps minimize tax evasion in the sports betting industry," he points out.
And a third item, also considered fundamental in this process, concerns the monitoring of transactions, ensuring that a deposit and prize withdrawal operation only takes place for the same beneficiary.
"Failure to observe these points can make bookmakers fertile ground for money laundering, and the importance of these matters lies in ensuring the safety and integrity of the gambling sector," adds the executive.
For Maschio, all these observations include protecting players and companies from illegal activities, promoting legal and tax compliance, and ensuring that governments and tax authorities receive adequate revenue.
"In this way, we will help create a more robust regulatory environment and promote partnerships and exchange of information between public and private entities to improve the integrity and sustainability of the sector," he clarifies.
Source: GMB
