MAR 7 DE MAYO DE 2024 - 07:38hs.
In Sport Committee

House approves request for public hearing to discuss sports betting in Brazil

Evandro Roman's request (29/19) was approved by the House of Representatives' Sport Committee at a meeting held on Tuesday (16) afternoon. In the document the parliamentarian asked for a Public Hearing with representatives of companies to discuss the regulation of online gaming in Brazil. In defense of the request, Roman recalled the lack of resources for sports and that the country lives a pact of mediocrity where it pretends that the activity does not exist and the one that loses with this situation is Brazil.

The session began around 2:00 p.m. and application 29/19, by Prof. Evandro Roman, was one of the last to be discussed. After the debate began, Roman presented his justifications for the request of the public audience:

"The goal is only one. We had the referral of Provisional Measure 846/2018 last year that we were able to translate into a federal law on December 12. So, sports betting online is now authorized and we are now in the regulation period with the competent bodies. So this work we are doing is to say make clear that there is a very large market in relation to this, of Brazilian bettors, who play their games in other countries and that the tax collection ends up in these countries.

We live today in a shortage of financial resources for sports. We have had, mainly recently, Caixa Econômica, which withdrew funds from football clubs. So it is more important that we put here the possibilities of these companies to act, since we are in the Committee on Sport, and we have to bring dividends so that we can be working both football, separately, and sports linked to the Brazilian Olympic Committee and non-Olympians as well.

So which is the way? What picture do we have? We have that in several places in the world this practice is legal. But we have four items that I have put together, which are important for us to discuss: customer identity regulations, sports betting integrity measures, anti-money laundering measures and responsible gaming and betting tools.

I've been working on it a couple of years ago, we've been in Macau seeing the way they work it with a special ministry of betting, and it is something very judicious and careful.

So, having today sports betting legalized in Brazil, we need to define the way to regulate this market. I think all the parties must collaborate so that this has a direction forward and especially for the support and encouragement of Brazilian sport," concluded Evandro Roman.

Following Roman' speech, the chairman of the session, Fábio Mitidieri (PSD / SE) recalled that the parliamentary request was broader because it was sports betting and cited the case of application games offering small purchases that generate expenses for the players. Taking advantage of this, Roman replied to the president of the session stating that Brazil is one of the few countries that does not have a legalized gaming market and, thus, does not protect these consumers.

"Brazil is part of a group of 15% of the countries in the world that do not have regularized betting; and together these are all the Muslim countries that have the religious criterion not to have gaming. In South America, we are the only one in this situation. Either the whole world is correct and we are wrong, or the other way around. Japan in its traditional canonical form did not accept, but in 2016 it implanted, and now moves forward with the regulation of the activity. So, I think we have to debate. And in situations like these I think the gaming sector has to be careful not to damage kids and not reach seniors. Because with this activity we have two possibilities: to regulate and bring dividends to Brazil or it will exist in an illegal way as was quoted by your excellence. So, in one way or another gaming exists. We have the opportunity to bring that debate to the Chamber of Deputies and make it possible to be regulated and in force," he concluded.

Regarding Roman words, Fábio Mitidieri admitted: "In practice what is happening in Brazil is that the betting industry works perfectly and only those who do not want to see and do not know how to collect is the government. Because no one has stopped gambling because it is unregulated or 'illegal'."

And Roman completed: "I would say it is the pact of mediocrity. What would that be? The government pretends that it does not see the current betting market and the sector pretends that the government is not monitoring. So, it is in a medium situation, nobody complicates anyone's and the one who does not collect is Brazil that is losing at least R$5 billion (US$ 1.3bn) or more a year just from collecting this activity."

There were no further debates and President Fábio Mitidieri opened the question for voting. As there were also no contrary manifestations to conduct the hearing, the application was approved. There is still no scheduled date for the meeting with the sports betting companies, but it should be announced soon.

Source: GMB