VIE 29 DE MARZO DE 2024 - 06:31hs.
OPINION - ANGELO ALBERONI, FOUNDER OF BETZILIAN.COM.BR

Brasilia could complicate the future of a betting law with several confusing points

“As soon as the much-commented draft of the Decree on Sports Betting Regulations was released, the warning signal from operators and the market in general was turned on,” says Angelo Alberoni, Betzilian founder and partner and operations chief of VX Comunicação Portugal in this opinion column. There are at least five controversial points, but in his text the author addresses only two: Taxes and Market Opening.

Brazil is not for amateurs and surprises happen every day. In the context of fixed odds sports betting and its Regulation could not be different.

Two weeks ago, the National Secretary of Public Policy Evaluation, Planning, Energy and Lottery of the Ministry of Economy, Alexandre Manuel, had surprised the market with interesting news about the future Brazilian market, adding some points of the Regulation to Law 13.756/18.

However, as soon as the much-commented draft was released, the warning signal from operators and the general market was turned on. There are at least five (Taxes, Market Opening, Criminal Types, Advertising and Authorizations) controversial points, but so that the article is not so long, I will address only two: TAXES and MARKET OPENING.

Let's go for each of them.

TAXES

Herein lies the first confusion.

Initially, Law No. 13.756/18 had determined that, in the physical environment, 80% of the lottery turnover (fixed odds) at least for the payment of prizes and the payment of income tax on the prize. While online, that percentage would rise to 89%.

Art. 30. The proceeds from the collection of the fixed odds betting lottery shall be destined as follows:

I - in physical environment

a) 80% (eighty percent), minimum, for the payment of premiums and payment of income tax on the award

(f) 14% (fourteen per cent), at the most, to cover the cost of maintenance and maintenance of the fixed-odd lottery operator;

II - in virtual environment:

(a) at least 89% (eighty-nine per cent) for the payment of premiums and the payment of income tax on the award;

(f) a maximum of 8% (eight per cent) to cover the cost and maintenance expenses of the fixed-odd lottery operator.


For the operator, revenue margins, before operating costs, would be 14% in the physical environment and 8% in the virtual one.

Now, if the taxation model was already described in the Law, how could the Regulation change these percentages and establish a new criterion? In addition to redistributing sources of revenue from gambling by the state? It is not possible.

Thus, the 99% collection model “to cover the costs of maintenance and maintenance of the lottery operator and gross prize” is something that should be passed on again to the Legislature, since the Decree cannot change the legal text.

When the Secretary goes public asking our legislators to amend a poorly published Law that needs a Regulation for one of its articles to be effective, we must understand that the game has just begun. Hence it is necessary to read between the lines of Brasilia.

In recent months, many Brazilian political agents have been actively working to reopen the discussion about sports betting in the country, since the power to regulate Article 29 of the Law has conferred almost full autonomy to the Ministry of Economy.

A lapse that was only noticed after its publication. At least in the understanding of our politicians.

From the speech at all events in recent months, the discussion of the Regulation should return to the Brazilian Legislative Houses, it seems, should further delay Brazil's transformation into a regulated sports betting market.

MARKET OPENING

Another point that caused confusion is in item III, paragraph 1 of art. 12 of the draft, which states that to operate in Brazil, the interested company must attach a statement that it has never operated illegally in a regulated market. Well, what about the companies that today “operate” in Brazil, how is their situation?

If the article is taken to the letter, many players who bet in Brazil still as gray market (occurs when some products are sold through distribution channels without legal authorization) must close their doors and bear the penalties provided in the Regulation, including the impossibility to operate in the market that helped to develop and were the pioneers. Along with the issue of taxes, this point needs to be further explained by the Secretariat.

Indeed, it is necessary to go beyond the legal text and establish a position on the ongoing operations in the country, as many of these operators have made it possible for Brazil to have created, albeit in a small way, its own sports betting culture capable of pressuring the state seeking their legalization.

Quarantine, blackout, forgiveness, etc. Until the opening of the market, after the fulfillment of the conditions of article 53 and its items, it was not clear how the Brazilian scenario will be, which already moves a few million reais and generates a growing number of indirect jobs.

The ideal will be a flexibility when it comes to demanding some of the statements cited in the Regulation, especially for companies that are already in the country and bet in Brazil when the world had no eyes for the people of Tupiniquim (local indigenous people).

Interpretation should be broad and not restrictive.

BRASILIA DOES NOT SLEEP ON THE POINT

There are so many unclear points in the draft of the Sports Betting Regulatory Decree in Brazil that will undoubtedly be the subject of new posts here, but these two points were the ones that first caught the eye.

With this confusion between Law and Decree, besides the express request of the Secretary for the discussion to have a new round of analysis in the Legislative Houses, it is possible to read between the lines that Brasília does not sleep on the point.

Will the regulation be out by December? Can. Will it be complete? I have my doubts, after all, if we need to revise the Law, with the amount of important matters on the agenda of Congress, we will hardly have an article 29 of Law No. 13.756/18 reformulated before 2020.

Anyway, it's just an opinion about a draft. So, let's hope this is all a daydream or another conspiracy theory.


Ângelo Alberoni

Ângelo Alberoni is the founder of Betzilian.com.br, partner and chief operating officer of VX Comunicação Portugal. He is also director of the Portuguese-Brazilian Chamber of Commerce and Industry - CCILB. Alberoni, in addition to a publicist, he is a lawyer and has been active in the online sports betting market since 2010.