The regulation of online sports betting is still under consideration at the Ministry of Finance but is expected to be resolved by December 31 of this year. This is according to the president of the National Association of Games and Lotteries (ANJL), Plínio Lemos Jorge.
In an interview with IstoÉ, Lemos Jorge stated that more than half of the regulation has already progressed, and only technical points remain before it can take effect, which is expected to happen in January next year.
"With the published ordinance, we have already covered more than half of the way. We still have the fine-tuning ordinances for companies to start operating. The Ministry of Finance believes that by December 31, the companies that applied for licensing will be ready," he said.
The regulatory proposal was approved last year by the National Congress. The text includes a 15% tax on winnings for bettors and a 12% tax on the revenue of companies.
The project also mandates that companies have a headquarters in Brazil. Currently, all operate in European countries or the United States.
"Starting January 1, 2025, sports betting companies need to have a Brazilian CNPJ (National Register of Legal Entities). They must pay taxes here, both municipal and even state taxes. Without a CNPJ, they cannot operate in Brazil," emphasized Lemos Jorge.
According to ANJL, about R$ 12 billion (US$ 2.25bn) was generated in online sports betting in 2023. Most transactions were conducted via Pix.
The president of the Association of Electronic Payment Methods Management (Pagos), Lincoln Rocha, believes that the sector will strengthen even more with the regulation of betting. He cites the bans on payments by bank slip and credit card as a reason for Pix's growth.
"What is not allowed is cash, bank slips, checks, virtual assets, and cryptocurrencies. Another that is prohibited in the regulation is the credit card," he explained.
"In Brazil, we had a differential factor of the country being a leader in the payment methods market. Compared to the global scenario, I do not know another country that has an immediate payment structure like Pix."
Rocha also discusses concerns about the organization of companies. In his view, there are chances of gaps in the Ministry of Finance's requests by December 31.
"It is already indicated in the ordinance what can and cannot be done. However, there is doubt if everyone will be able to submit the requests and fill the gaps to organize themselves. Will the payment companies have these volumes by January 1? That is still a question," emphasized the president of Pagos.
Although the regulation is still in the technical field, experts agree on predicting the growth of the sports betting volume for the coming years. Both believe that Brazil could benefit from the regulation and that government revenue is likely to increase considerably in 2025.
"The expectation is that the market will grow significantly. With regulation, large international groups will look to Brazil to offer this online entertainment. We will certainly feel this from mid-July next year," said Jorge.
Source: IstoÉ