SÁB 7 DE DEZEMBRO DE 2019 - 05:27hs.
Economy wants to move forward in first half of 2019

Brazil defines competition model for sports betting: concession or licenses

According to the Secretary for Evaluation of Public Policies, Planning, Energy and Lottery of the Ministry of Economy, Alexandre Manoel, two models of operation are being evaluated, both for physical and online betting. 'This decision depends on the choice between a fixed or variable number of companies that will operate the bets. If we decide for a fixed number, we will opt for the 'concession' model. If it is a variable number, the model will be 'licenses'', he informs.

The Ministry of Economy wants to define in the first half of 2019 the most viable model for the Brazilian competitive market for the operation of fixed-odds sports betting (in which the bettor knows beforehand how much he will receive if he wins), within the process of regulation of Law 13,756 / 2018.

According to the Secretary for Evaluation of Public Policies, Planning, Energy and Lottery of the Ministry of Economy, Alexandre Manoel, two models of operation are being evaluated, both for physical and online betting. "This decision depends on the choice between a fixed or variable number of companies that will operate the bets. If we decide for a fixed number, we will choose the 'concession' model,” he informs.

The Law requires that sports bets on a fixed amount are necessarily operated competitively. After the definition stage of the competition model, the government will design the minimum structure to carry out the regulation, in both physical and technological-operational terms. "The existing structure is enough to regulate the Caixa Econômica Federal, which is now a monopolist, and also the bet through the instant lottery, which soon will be operated by a completely private company, consortium or Special Purpose Company (SPE)," explains the secretary.

Alexandre Manoel points out that the main objectives of the federal government in regulating this law will be to increase the participation of private initiative in the Brazilian market, facilitating the generation of jobs, and ensuring the integrity of sports. "What moved the Ministry to support the congressmen was to understand that this regulation contributes to the integrity of the sport, ensuring that the results of the games will be reliable and resulting from the effort of the athletes," he says.

According to the secretary, in this effort for quality and fairness in sports, the government hopes to count on the support of international associations that already work in foreign leagues during the process of regulating the Law. "We are looking, especially in European countries which already have this more mature sports betting market, such as Portugal, England and Italy."

Regarding possible companies that use websites hosted in other countries to operate sports betting in Brazil, the secretary points out that they are illegal. "In regulating the law, we will take all legal measures to tighten the existing penalties. As a regulator, we will deal exclusively with what is legal.”

Lotex

Law 13756/2018 indicates that the government will have two years, extendable by two more, to regulate it. According to Alexandre Manoel, the current expectation is to meet the initial deadline, without the need for an extension. "We are already calling for the opening of the lottery market for the private sector with the Lotex concession, the instant lottery modality that the government is requesting to grant to the private sector, with an auction scheduled for March 26. This concession being effective will certainly make it easier to comply with regulations in two years," he emphasizes.

Source: GMB / Ministério da Economia