One year after the passage of the law that allowed fixed-odds sports betting - a mode in which it is known from the outset how much the gambler can win - the government does not want to waste time and intends to publish by decree to regularize this type of betting in the country. If the schedule is confirmed, fixed odds bets may be offered later this year to the public.
The goal is to provide legal certainty for large international companies in the sector to operate in Brazil, either by sponsoring clubs or operating bets through physical or online. In addition, the monthly contributions that will be paid by the companies to exploit the business, as well as part of the stakes collection, should leverage onlendings to the social area at a tight budget.
A second decree is also scheduled for this quarter to promote a change in horse racing betting rules, the so-called “sweepstake”.
In an interview with Valor, the undersecretary of the Ministry of Economy's Prizes and Sweepstakes, Waldir Eustáquio Marques Junior, said companies from countries such as England, Italy, the United States, Greece, Portugal and Denmark have already shown interest in exploring fixed-odds sports betting, but await regulation.
He countered criticism that social transfers, which are seen as an additional tax by foreign companies, will reduce the attractiveness of the business. To support the reasoning, he said that taxation (taxes and social transfers) will correspond to 35% of the operator's profit in the country.
"Much similar to what happens in Greece and France," said Marques Junior. He added that there are countries like Portugal where this percentage can reach 65%.
One of the risks to the business, according to Marques, is exactly the fact that four states - Ceará, Pernambuco, Minas Gerais and Rio de Janeiro - that could not have lottery products, offer this type of service due to injunctions granted in court. The economic team has already called on the Federal Attorney General (AGU) to overturn these permits. According to him, this has taken interest from some companies, such as Lotex.
In December 2018, Law 13,756 was approved, which authorized the fixed-odd sports lottery. According to the undersecretary, the approved legislation can be classified as an average one and, therefore, the government will always try to improve it. “We wanted something better, but we have to work with what we have.”
The delay in regulation, the undersecretary explained, was because the technical group of the economic team dedicated the year 2019 to study the operation of fixed-odd sports betting abroad and to hold public consultations. The objective is to reach a decree capable of making a profitable business possible for foreign betting companies interested in entering the country, without neglecting the interests of the gambler and the resources allocated to the social area.
In mid-2019, two public consultations were opened to discuss the draft decree. However, there was no agreement on some points, such as the requirement of a guarantee reserve of R$ 6 million (US$ 1.47m) from the sportsbook operator. After studies and analysis, according to Marques, the new decree that is being evaluated by the Attorney General of the National Treasury (PGFN) - should set a reserve value over R$ 6 million (US$ 1.47m). Only people over 18 can place bets.
The undersecretary declined to make any projections of how much the government might raise from the deal. The lottery coordinator, Adhemar Ranciaro Neto, said that in this type of bet the amount collected is not very large.
"The goal of bringing the bets to legality in this modality is to try to bring consumer safety, protect the popular economy and improve the business environment within that branch," said Ranciaro Neto. "We also think about the integrity of the sport; when you are gambling, there is usually a problem with the manipulation of games. Bringing it to legality and creating a regulatory framework, we carry this concern of minimizing deleterious effects on the sport."
The passage of Law 13,756 allowed companies operating with foreign bets to enter the country. Marques said that as a result, many bookmakers became club sponsors. By regulating the so-called fixed-odd, said the undersecretary, the government will provide the necessary legal certainty for larger companies to come to the country as well. "Our idea is to bring these 50 largest firms to sponsor Brazilian sport."
In the case of ‘sweepstake’, the government has never issued an authorization for this type of betting due to lack of interest from operators. Therefore, another decree wants to make the business for those who operate more advantageous and guarantee a better prize for those who bet. "It was not attractive [current regulation] for the Jockey [Clubs] because the prizes were small. We are making it more attractive," said the undersecretary.
According to him, the new decree should simplify the rules for the operation of Jockey Clubs, which will have a cost reduction with the removal of intermediaries, such as Caixa Econômica Federal. In addition, Jockeys may have points of sale distributed throughout the country, which is not allowed today, as well as advertise. They will also be able to market the games via online.
Source: Edna Simão e Mariana Ribeiro / Valor Econômico
