The sports betting scenario has been undergoing significant changes in Brazil and worldwide. Provisional Measure (PM) 1,182/2023, published last week, represents an important step in regulating this market in national territory. However, some uncertainties still hover over the subject, raising relevant questions to be debated.
One of the most discussed aspects in the PM on betting is the transfer of power to the Ministry of Finance to define the forms and fees to be paid by entities seeking authorization to operate in the betting market. This measure was received with mixed feelings, as although it represents an attempt to regulate the sector, it creates concern about the possibility of excessive fees that could make the operation of some participants unfeasible, limiting the diversity and competitiveness of the market.
It is essential for the government to establish fair and transparent regulation, which encourages the participation of different actors and guarantees the economic viability of operations, without compromising tax collection.
Another relevant point is the non-change in the gambler's taxation. It is necessary to differentiate sports bettors from lottery players already explored by the Government, since they are different activities with different audiences and behaviors. Excessive taxation as it stands will certainly drive gamblers into the illegal market, undermining the government's efforts to create a regulated, safe and beneficial environment for all involved. Taxation should consider the particularities of this segment and seek a balance between tax collection and encouraging the legality of sports betting.
On the international scene, countries such as the United Kingdom and some states in the United States have been examples of successful regulation of sports betting. They have shown that legalization and the adoption of a regulated environment are capable of bringing significant benefits, such as increasing tax collection, creating jobs, promoting tourism and reducing the illegal market.
In addition, the regulation allows consumers to be protected through mechanisms of control and social responsibility, preventing the development of risky behavior related to gambling. There is no wheel to be invented. The experience of these countries should be used for a well-regulated environment in our country.
A positive point of the PM is the implementation of mechanisms to curb the operation of bookmakers that operate without authorization. Prohibiting advertising, blocking electronic sites and means of payment are important measures to fight the illegal market, ensuring that only duly authorized entities operate in the country. These measures aim to protect consumers from potential fraud and ensure the integrity of the market, ensuring that operations are carried out in a transparent and responsible manner.
Encouraging advertising self-regulation in the betting market is another success of the PM. The dynamism and speed of advertising should not wait for bureaucratic and slow decisions. Conar already plays a prominent role in Brazilian advertising and is in a position to regulate bet advertising.
However, despite the advances represented by the sports betting PM, there are still unanswered questions and challenges to be overcome. The definition of fees and forms of operating authorization must be based on solid studies and considering the best international practices, to avoid distortions and future problems.
Luciano Andrade Pinheiro
Partner at Corrêa da Veiga Advogados. Graduated in Law from the Federal University of Bahia. Master in Intellectual Property and Technology Transfer from UNB; President of the OAB/DF Sports Law Commission; member of the National Academy of Sports Law; author of the books Symbols of Sport and Sports Law Studies.
