SÁB 20 DE ABRIL DE 2024 - 06:32hs.
Economy Ministry receives 2,644 suggestions

Brazilian Government corrects three points of the sports betting regulation decree

The Ministry of Economy received 2,644 contributions in a public consultation launched after the release of the draft sports betting decree. After finalizing the suggestion-receiving period, which ended last Sunday, the portfolio should make adjustments to three points in the current law text that allow for dubious interpretation: quarantine, taxation and betting possibilities.

"So far, it seems to us that the proposed model has been well accepted. But the text needs to be clarified in several articles," says Alexandre Manoel l Angelo da Silva, National Secretary for Public Policy Evaluation, Planning, Energy and Lottery of the Economy Ministry. "We will make corrections internally in two or three weeks," he adds.

Three points in the current text allow for dubious interpretation and will be corrected: quarantine, taxation and betting possibilities.

There were some experts who argued that international sites that currently accept bets from Brazilians should be quarantined. This would be a form of punishment for operating illegally, as betting is not yet regulated in the country.

Technicians from the Ministry of Economy evaluated that the absence of quarantine will be a stimulus to bring these companies to legality. This, however, is not clear in the law.

Article 30 states that “any form of advertising or disclosure of the fixed-odd lottery betting by any natural or legal person except those authorized by the operator is prohibited”.

Such text gives the idea that those who already advertise gambling sites in the country may be prevented from participating in the market. The idea of the law is that such advertising is not allowed once the market begins to operate in the country. By the Ministry of Economy's schedule, that would be mid-2020.

Another point of the law is to make it clear that taxation will be on bookmakers' revenues, not on the prize pool.

"There have been requests from the market that we cannot meet. For example, they want different treatment compared to the lottery gambler. There is no way. There will be the same income tax. If the prize is above the limit established by law (R$ 1,903.98 -US$ 457-) there will be taxation ", explains Silva.

Another point to be corrected in the text of the decree borders on the obvious, but it is necessary.

"It must be made clear that the player can place bets before and during the game," says the secretary.

Change in law

There is a parallel work with the National Congress. Three adjustments to the legislation are required for the market to start trading.

The first concern is to make clear the allocation of the amount collected with prescribed bets, ie, prizes that were not redeemed by bettors. It seems a mere detail, but in 2018, there was a total collection of R$ 300 million (US$ 72m) with prescribed bets.

"The award prescribed today has no destination. We want it to go to education," says Silva.

Another point is the criminalization for illegal gambling sites and for those who participate in manipulation of results. The government project provides for one to five years imprisonment for those who operate without a license. People who participate in arranged outcomes can spend two to eight years in prison. Both offenders also pay a fine.

Source: GMB / O Globo - Adalberto Leister Filho