Monday, December 4, 2023
HomeiGaming NewsDeadline for regulation of the sports betting sector ends this Monday -...

Deadline for regulation of the sports betting sector ends this Monday – iGaming Brazil

Brazilian viewers must have come across advertising campaigns by sports betting companies. Players, former soccer players and influencers are the main names in marketing actions by bookmakers in a market that should mobilize BRL 6.3 billion in 2022, according to the British consultancy H2 Gambling Capital.
On the rise in Brazil, the segment still needs regulation. That is, a set of norms that establish how the activity must be carried out and exploited commercially.
This universe was leveraged in Brazil from a decree signed by then President Michel Temer, on December 12, 2018, allowing betting and the promotion of advertising campaigns and sponsorships by the sector.
The text provided, however, that the announcement of norms should be defined within a period of up to two years, extendable for another two years by the Ministry of Finance (in the current government, it would be up to the Ministry of Economy). With that deadline ending, this Monday, the 12th, the subject has not evolved and, according to the ministry, “is still under study by the government”.
The Exame website spoke to specialists in sports law who ensured that the end of this period should not have an impact on either betting companies or players.
After all, bookmakers are not yet headquartered in Brazil. Due to the Misdemeanors Law of 1941, of the government of Getúlio Vargas, the houses cannot operate from within the national territory because they are characterized as ‘games of chance’. In this case, the money is sent abroad and does not generate the due return to Brazil.
“Today, these companies create products related to Brazilian sports, to the market for Brazilian consumers to place bets, but for all intents and purposes it is as if they were doing a legal deal or a contract with a foreign company. And, therefore, the applicable legislation is foreign. Therefore, if there is no regulation, nothing changes”, said Luiz Marcondes, lawyer, professor of sports law and honorary president of the Ibero-American Institute of Sports Law to the Exame website.
The regulation is awaited by the industry aiming at transparency and legal certainty in relation to the rules of the game, something that currently does not exist. It is also relevant for bettors, who are subject to the laws of the countries of the betting sites and without support in Brazilian legislation.
Another way is that sports betting companies can operate directly from Brazil, which would represent the entry of investments and the creation of new jobs. Another expectation is that the houses will be released to operate directly from Brazil, which could mean the entry of investments and the creation of jobs.
“The absence of regulation can harm everyone involved in the segment. The government does not receive taxes, customers do not have a clear reference to reliable bookmakers and operators do not have the necessary legal security to scale their investment in the national territory”, says Alexandre Fonseca, country manager of Betano in Brazil.
Projecting regulation for the next year, H2 Gambling Capital believes that the industry could surpass the BRL 11.2 billion mark in 2024. In 2027, five years later, it would reach almost BRL 18 billion.
According to Marcondes, the complexity of the subject, within a troubled political scenario, may have contributed to the proposal not advancing. The gain in visibility and importance, as observed during the World Cup, can help break down some barriers.
“It is very clear that we have a super relevant social fact that generates billions and we know that it does, so I imagine that it will soon be on the government’s agenda”, he concludes.

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