On December 8 and 9 took place the Brazilian Gaming Congress (BgC) in a digital version, where it was discussed the future scenario of gambling in Brazil, which is considered the next “big market” of the sector. For the market and for investors, three themes stood out mainly: sports betting, state lotteries and the release of the gaming sector with the return of casinos.
Firstly, the Under-Secretary for Prizes and Draws of the Ministry of Economy, Waldir Eustáquio, reported that the BNDES, Ministry of Economy and the PPI (Investment Partnership Program) are working together to carry out technical studies to regulate sports betting until July 2021. He has already stated that sports betting will most likely be awarded to individuals through concession contracts, preceded by public tenders.
Law 13.756 / 2018, which approved fixed-odd sports betting, already indicates that sports betting is considered a public service, which will attract the general rules applied to these economic activities, as well as specific rules that will be defined by the regulator. In this context, the structuring of the concession and public bidding for the dispute between those interested in participating in the sector are inserted. Companies interested in the sector can prepare to participate in tenders taking into account the current rules on public service tenders and concessions, even though the regulations may bring about changes. The important thing is that there is already a starting point for business planning.
Furthermore, Law 13.756 provides that the exploitation of sports betting should take place in a competitive environment, removing any possibility of a single operator in the country. The regulation should be shaped in such a way as to allow effective competition, otherwise, it will violate the law and may be questioned administratively and judicially. These are just a few guidelines that will guide the regulation of sports betting.
The second topic discussed was the new perspectives of the state lotteries in view of the decision taken by the STF in September that concluded that the Union does not have exclusivity to explore lotteries. With this, the States can create and operate their own lotteries, following the rules provided for by the Union. The market expectation for 2021 is the creation of new lotteries in several States, which can be operated directly by the State, but can also be delegated for private initiative. Therefore, there is a prospect of a large market that can be explored by companies in the sector.
Finally, it was addressed the possibilities of releasing gambling in general and the return of casinos. It was discussed the existence of illegal gambling in the country and the benefits of their legalization, especially about the potential to generate taxes and jobs. As for the harm associated with casinos, the various existing solutions to prevent or mitigate their occurrence were pointed out, especially with responsible gambling and money laundering prevention programs. The conclusion is that the release of the gambling sector has many benefits for the country and for the Brazilian population, and that the potential losses can be prevented.
Also, the draft bills in progress on the liberation of casinos were briefly debated and, especially, it was about the liberation of gambing restricted to integrated resorts or to a broader model. The scenario is still very uncertain and depends on the movement of the National Congress, but there are strong indications that the issue will return to the agenda of Senators and Federal Deputies.
The Brazilian Gaming Congress, which was attended by members of the Federal Government and Senator of the Republic, shows that the gaming sector will grow and develop in Brazil, in different areas. In this scenario, there are many investment and business creation opportunities that can be taken advantage of. Vernalha Pereira has a team of lawyers specialized in the gaming sector, in concessions and tenders and regulatory law, which is prepared to advise companies in the sector or interested in investing or entering this market. The Administrative Law area remains available to clarify this and other topics of interest to its clients.
Ricardo de Paula Feijó
Lawyer in the area of administrative law
