At first, the Ministry of Economy showed interest in granting unlimited licenses to entrepreneurs wishing to participate in the sports betting business in Brazil, as legalized as of the enactment of Law 13,756 / 2018, at the end of last year.
Such authorization would bring a model very similar to what occurs in European countries like England, Belgium, Estonia and Costa Rica.
At the public hearing held last May 28 in the Ministry of Sports, it was also aligned that the draft regulation of the standard should be available within the period of 120 days, which would enable the start of the operation in Brazil already to the beginning of the year 2020.
The proposed model was widely celebrated by investors, as well as lawyers and specialists in the segment, considering that the scenario would also include the possibilities of granting licenses in a limited and more costly manner, as is the case in Germany, as well as through the system monopoly, in force in countries such as Sweden, the Philippines and Canada.
Such models present points that could generate conflict with the current context of the national market, which currently operates through companies located in physical paradises, such as the Republic of Malta.
In this sense, the model of limited concession could create an obstacle to the growth of the business in scale, since it would foster a fierce competitiveness with the present model, whose preponderant action is of international entrepreneurs, due to the most attractive financial conditions to the consumer.
The monopoly system is the least attractive in the market vision, since Brazil currently operates in a similar model, with exclusivity of action by the Caixa Econômica Federal, through sports lotteries.
Foreign experience suggests that the effectiveness of the regime to be established will depend, in addition to the quality of the regulation that will accompany it, on the attractiveness of the local economy and also on the tax regime, which should be efficient enough to guarantee the highest possible collection and, thus, making attractive to the operators who come to Brazil attractive.
Thus, considering that it is necessary for the country to present a better competitive capacity to reproduce the economic growth of the business and, consequently, to raise state revenue, the model of authorization of unlimited licenses with tax benefits would be the most adequate for the development of startups as well as for the global market migration to our territory, which would result in a potential growth of the huge peripheral market that leverages sports entertainment.
Leonardo Neri Candido de Azevedo
Leonardo Neri has extensive experience in Civil Litigation and is highly qualified in Consumer Law, in addition to be a Master in the field of Sports. He represents national and multinational companies in the resolution of civil and consumer litigation. He is author of several articles on topics related to consumer relations in the new economy, importance of the law of personal data and Sports Law.
