Special advisor to the Ministry of Finance José Francisco Manssur warned sports betting houses not to buy licenses from state lotteries to operate throughout the national territory. According to him, the matter can be taken to court.
During a public hearing in the Chamber of Deputies, Manssur was asked by lawyer Udo Seckelmann, from the National Academy of Sports Law (ANDD), about the “exclusive regulatory environment”, in which state lotteries are already granting accreditation for operators to operate throughout Brazil.
Udo cited the example of Rio de Janeiro, where the cost of the grant is R$5 million (US$ 1m), with taxation of 5% on the GGR, which means that numerous operators are interested in local licenses for national operations.
Manssur was categorical: “The federal government is very concerned about the issue of state lotteries, and I do not advise betting houses to have the understanding that they can apply for a local license to operate throughout Brazil.” According to him, “the government will not allow it and we are already reacting and will take the issue to court,” he stated.
Betting companies have considered purchasing a state lottery operating license, which would be less bureaucratic and cheaper, according to them. Authorization in these cases, however, would only apply to the state limits, even if the games are played over the internet. Manssur warned of the intention to use the same license to operate throughout the national territory.
"The federal government is very concerned about the issue of state lotteries. I would not advise betting houses to buy a state license thinking that they will be able to operate throughout Brazil. Not respecting geographic limits is not what is stated in the STF ruling and the federal government will not allow it, not without reacting. Think carefully before buying a state license. The limits on the internet are becoming more difficult, yes, but we already have georeferencing systems to make the license in Rio de Janeiro, for example, valid only in Rio," he said.
New ordinances
The advisor to the Ministry of Finance also stated that new ordinances will be launched soon to continue the sector's regulation process, including one in partnership with the Central Bank, so that payment method companies go through a certification process so that can offer their services.
Furthermore, “we will have an ordinance to deal with how sports betting will be taxed. The taxation rules are already in the Provisional Measure, which is being debated in the National Congress. We are open to discussing possible adjustments with Parliament, which even the operators are requesting.”
According to the Treasury advisor, a new ordinance is about to be issued that will define the deadline for receiving the grant, adding that it will only occur from 2024. “At this moment, we are going to issue a new ordinance asking companies to make a statement of interest, without paying anything at the moment, but within a period to be defined. This way, we will have a metric of the size of the sector and the possibilities of revenue from the activity.”
He recalled that to collect taxes, additional obligations need to be created. “There will be a specific ordinance on this, as well as another for the authorization criteria. They will have to be objective. We will create a system at the Ministry of Finance for the operator to apply to operate in Brazil through software. There's no need for conversation. Just present the required documents and pay the grant fee,” he said.
Source: GMB
