GMB - What is your assessment of the timing of the gaming debates in Brazil after the approval of the PM that legalized sports betting and the OGS event that brought a lot of information to those interested in this modality?
Roberto Brasil Fernande - The debates about this new form of sports betting are fundamental both to convince the business sector and especially the federal government. We need elements, cases, regulatory models and business culture to bring to Brazil. The country has the opportunity to bring the best world experiences on online games, sports betting and all the other games that circulate in the world and that will surely come to Brazil. And this opportunity will give Brazil the chance to have one of the best legislations in the world. That is why these events are fundamental.
After the legalization of sports betting, do you believe that state lotteries could act in any way in the operation of this modality?
I do not see how the states will not be together in this process. Federations will somehow, directly or indirectly, benefit from the regulation of sports betting. Perhaps, assured by the decision of the Federal Supreme Court by the expectation of the judgment in 2019 of ADPF 493 that is an allegation of breach of fundamental precept that aims to establish in a safe way what is the competence of the State in terms of exploration and regulation of legalized gambling modalities by federal law and what are the competencies of the Union in that same sense.
If the Supreme Court finds that the State has the competence to operate this service, we will have 27 states with the possibility of authorizing within their territory the exploitation of sports betting in a physical or online environment. If they do not understand that way, they are left to the Federal Government, by SEFEL of the Ministry of Finance, unless a regulatory agency is created, and the taxes of this activity, even if not operated directly by the states, are operated only by the Union, will benefit the states with participation in this revenue from the business and replacing what we have in the country today in large scale that are illegal and clandestine gaming.
Do you believe that the legalization of sports betting can boost other gaming modalities that can also be regularized in the near future?
Sports betting is very important. It is a modality established worldwide, with a vertical growth. Perhaps the one that grows the most in the world are the sports bets, in a globalized form and in a macro environment; and it can bring a model that will serve all other modalities, such as bingo, casino, jogo do bicho, that can be regularized.
It is fundamental that the experience of the OGS event and of the many lectures we had, have emphasized factors such as: tax aspects incident to the activities; the basis of calculations, the generating event and the aliquot incident on the operation of the activity. That is, we have to have a tax feasibility considering that the government is an important partner of all the companies in our country and the businessman has to be sure how much they will pay to the government to operate the business. Only then they can make a business plan and know in advance which will be the profit margin. From that point, they will see the viability of the investment or not. So, the tax aspect is fundamental.
Another important aspect of sports betting is the requirement to adopt technology already in place in other countries that ensures accurate and reliable information, in real time, preferably from all aspects related to collection, payment of prizes and taxes to be paid. All that is important so that there is no evasion or money laundering and that it becomes a very efficient way for the control of ludopathy.
The third point is about the qualification of companies. These need to have expertise, be well formed, with legal structure installed here in Brazil to also provide security from the criminal and civilian point of view for operations with punters here in the country.
What is your perspective for the new political scenario that will be formed in Brazil in 2019, with a new government and a very renewed congress in the two legislative houses?
The national congress has always been a challenge, but it can not be seen as a barrier. It is a filter of bills. I presented the data, the facts, during my conference. Brazil has a legislative production that does not surpass 3% of the projects proposed by the legislators. Then, from the bills that come from the federal deputies and the senators of the republic, only around 3% becomes law.
So, the locus of debate of casino regulation, bingo, of any other game that comes to Brazil is the federal government. I say this because there was a 100% renewal in the federal government and there was a 50%, 60% renewal in the legislative houses. Of course, they are important, but if we do not see a federal government project, we will not convince this or that deputy about the importance of approving this or that project. Therefore, I reaffirm that the Locus of Debate is the federal government, its technicians, civil society, and the media debate, which will form the basis for the approval of bills in Brazil.
In what projects will ABLE focus its activities in 2019, seeking a bigger operation for state lotteries throughout Brazil?
ABLE defends state lotteries in Brazil. We advocate that all states of the country have a state lottery and that all of them, from our point of view, can exploit all legalized products approved in the federal legislation. So we can not do everything, we can do everything that is limited by federal law. We have been processing in the Supreme Court the ADPF 493 that is in the report of the minister Gilmar Mendes, with request for a list of judgments, that will answer the questions that were put here. What states can operate as prognostic contests? What state lotteries can exploit in their territories to obtain income to finance various social actions and social security. Then, ABLE this year will be attentive to the decision of the STF and to the bills that contemplate the states and process today in the National Congress.
Apart from legal advice to ABLE, what other services does your law firm offer to companies interested on participating in the Brazilian gaming market?
I am a lawyer and serve companies that intend to operate with legal games in the states or authorized by the Union, including jockey club, poker or any other activity that is legalized in Brazil. All legal solutions are handled by our office. So, we are prepared to create companies, records in competent bodies, monitor the entire accounting aspect, capital intentions that is something very important for companies that come from outside. Anyway, we are a law firm that serves the companies and also the Brazilian Association of State Lotteries.
Source: Exclusive GMB
