Alckmin, who is vice president and also minister of Development, Industry, Commerce and Services (MDIC), met with industry and commerce representatives at the BNDES headquarters in São Paulo, early in the afternoon and, according to those present, he promised to take the issue to the other ministers.
The president of the Institute for Retail Development, Jorge Gonçalves, said that the group "Proposal for the Nation", which includes 15 entities that supported the manifesto for the regulation of advertising and sponsorships by online betting companies, as well as for the immediate ban on the use of credit cards to pay for bets, took these issues to Alckmin, who showed interest and demonstrated that the points raised were "coherent."
As revealed by Estadão portal, an economic team proposed the creation of an inter-ministerial group to deal with sports betting, but the proposal never came to fruition. The Ministry of Finance reported, in a note, that the group is "under construction".
One of the issues discussed by representatives of industry and commerce with Alckmin was the taxation of these companies. "We even consider it unfair to tax 12%, while we pay 30%, 40%. We emphasize that, if it is a question of addictions similar to smoking or drinking, there should be an equivalent tax. He thought it makes sense," said Gonçalves.
The law provides for a 12% tax on online betting companies' gross gaming revenue, minus the prizes paid to bettors - the so-called GGR (gross gaming revenue).
Advertising regulation was also a relevant topic. At the end of July, the Treasury published an ordinance with rules to prevent and punish abusive advertising and required that 'Bets' - as the companies are called in Brazil - take actions to combat addiction disorders, including avoiding the suspension of players with a "high risk of addiction."
There are, however, no specific criteria for this classification, which would be the responsibility of each company - "as long as it meets the minimum requirements defined in the ordinance," the ministry emphasizes.
As reported in Estadão, there is currently a Proposed Amendment to the Constitution (PEC) in the signature collection phase, which equates sports betting with alcoholic beverages, tobacco, pesticides and medicines, and imposes legal restrictions on commercial advertising in the sector, with the requirement to warn of the harmful effects.
The associations, however, believe that this is a very long path given the speed at which 'Bets' is growing in the country. “It has to happen now, there has to be a provisional measure, there has to be something that immediately contains it,” says Gonçalves.
Credit card
Likewise, the group calls for an immediate end to the payment of bets via credit card or similar means. With the new regulation of the 'Bets' market, the use of credit cards to pay for bets will be prohibited, but only from January 2025.
The manager of development and competitive intelligence at the Brazilian Textile and Apparel Industry Association (Abit), Oliver Tan Oh, who was also present at the meeting, said that the government needs to step up and not only make payments via credit card, but also block other types of payment methods that end up dividing consumers.
Source: Estadão
