Below is the official note that the IBJR issued with its analysis of bill 3623/2023 approved by the Chamber:
IBJR weighs in on the sports betting scenario after the Chamber approval of the bill 3626
The Brazilian Institute of Responsible Gaming (IBJR) applauds the approval by the House of Representatives of the bill 3626/2023, which regulates the igaming sector in Brazil. IBJR positively notes that the bill includes a broad portfolio of products that complement sports betting. While this represents an important milestone for the regulation of the national market, the content of the bill as approved in the House of Representatives poses significant threats to the viability of a sustainable industry that works for society, the government, consumers, operators and other market stakeholders.
Unfortunately, bill 3626 conceptually reproduces the same model adopted in countries where there is limited government revenue and thriving parallel betting markets.
The text, if approved by the Senate in its current form, will make it impossible for companies to create competitive products that are attractive to consumers, with prizes that cannot compete with those offered on the illegal market. This has already happened in countries like Portugal and France, where almost half of all bets are placed on unregulated sites, the vast majority of which are based in other jurisdictions.
In order to match successful markets, maximizing government revenues and protecting sports integrity, the betting itself and fighting money laundering, Brazil must change course and take the following measures: extend the duration of the operating license, readjust tax rates, adjust inspection fees, adjust licensing, as well as review the calculation for Withholding Income Tax.
The bill passed by the House creates an incentive for operators who are not interested in obtaining a license and paying taxes in Brazil. They know that if the text is not changed, they will be guaranteed a thriving illegal market where licensed operators will be unable to compete.
Against this backdrop, IBJR members are re-evaluating potential investments in the country, including in sports and other related projects.
We have repeatedly shared these considerations with the leaders of the Executive and Legislative branches in Brasilia, but our concerns have so far remained unaddressed.
Fortunately, there is still time to implement a policy that aligns the interests of Brazilian society, the government, consumers and the companies that make up the national gaming and betting ecosystem.
About the Brazilian Institute of Responsible Gaming
The Brazilian Institute of Responsible Gaming (IBJR) is formed from the union of the companies Bet365, Flutter, Entain, Betsson Group, Betway Group, Yolo Group, Netbet Group, KTO Group, Rei do Pitaco, Novibet and LeoVegas with the aim of promoting the debate on the regulation of this sector in Brazil, contributing with information to defend the creation of clear rules and guidelines so that sports betting companies can operate legally, protecting the interests of players and society.
Currently, in addition to igaming and sports betting companies, IBJR has among its associate members payment companies such as Grupo OKTO and Pay4Fun, and media groups such as Better Collective.
More about the IBJR at https://ibjr.org
Source: GMB
