According to the executive, the lotteries are well established, while poker has fallen a little, but what is noticeable at this time are the casino games. "In the case of Latin America, we can cite successful examples from Colombia and Peru, which may give Brazil an opportunity to follow good paths for positive regulation for the country," he said.
“In Brazil, lotteries are regulated, but there is a lack of regulation for various gaming activities to ensure high tax figures.” Even with a law passed, regulation has not yet put sports betting into operation. There is US$ 7.5 billion for the operation of the online gaming market in Brazil. If we talk about casinos, those figures will be incredibly higher,” he said.
For De Fabritiis, illegal gambling tends to die with the regulation of all gaming activities, which will have incredible strength, as it is a country with more than 200 million inhabitants. “The ecosystem will be perfect with proper regulation, well-developed operations, appropriate gaming offerings, good control and sustainable work for responsible gaming, as well as a competitive model for all involved.”
With a well-established set of measures, according to him, it will be possible to minimize illegal gambling and strengthen the serious and tax-generating activity that Brazil needs. "The country can achieve, at the start of regulation, around US$ 1.5 billion in online gambling business, as long as taxation for the activity is set correctly."
The same, according to the executive, may happen with the regulation of other modalities, such as land-based casinos, which complement the offer and can generate huge investments if the country decides to debate and pass a broader law. “The better regulated a complete gaming market is, the smaller the illegal operation will be and the more wealth will be generated for the economy. This must be taken into account by Brazilian authorities especially in the case of taxation. Taxes cannot make the activity unfeasible, otherwise it will be made - or kept - illegal. ”
For online trading, Mauro De Fabritiis suggests that the taxation model has to be fixed beforehand in order for operators to position themselves on the type of transaction. "It is very difficult to enter a market without a strategy that addresses all aspects of a sustainable and interesting operation for both the operator and the country itself."
Regarding land-based actions, each operator must understand the issue of taxation, points to be chosen and investments to be made for the beginning of the operation. “It's not enough to have a license and go out and open rooms. It takes planning and a lot of focus for a successful business,” commented De Fabritiis.
“There is also the multichannel model, with online operation in conjunction with physical rooms. This alternative, also foreseen in future regulation, may lead to the operator having a negative margin, as taxation is the break-even point for a multichannel business, but there are other unforeseen expenses that do not exist in an online business only,” he said.
“It is possible to regulate the sector, but the ecosystem needs to understand that it cannot waste the opportunity to discuss as much as possible all the issues related to this regulation so that the sector develops properly in Brazil”, he concluded.
Source: GMB
