In Brazil, casinos and bookmakers have been banned since 1946, and yet the act of placing a sports bet is not exactly illegal. Although our 1946 legislation prohibited the establishment of land-based structures for gambling, the subsequent evolution of the internet has allowed online betting from international servers to operate in a non-regulated “grey area”. After decades of tolerating this legal loophole, Brazil is finally ready to regulate its whole sports betting market.
My main objective with this article is to stimulate debate on the best way to regulate the sports betting industry. I propose that Brazil should seek inspiration in foreign markets where the system works correctly. Throughout the article, I make comparisons between Brazil and England, being the model adopted by the latter the most modern and effective in the world today, in my view.
My article is divided into 3 main parts: first, I give a brief overview of the current legislative situation in Brazil, then I propose the fundamental pillars that an efficient regulatory system must have and, finally, how the regulation of sports betting can be commercially beneficial to Brazilian clubs – especially in football – at the same time that Brazil must safeguard the integrity of the sport.
The second part is the heart of the article. The fundamental pillars that every regulatory system must have are:
1- Licensing model
2- Supervisory bodies
3- Bet monitoring system
Consolidating these three pillars in an effective and professional manner is "half the way" for a well regulated industry that ensures a balance between the benefits of sports betting in Brazil and the inherent risks of such activity.
I believe that this is a big step for Brazilian football. The billion-dollar sports betting market grows every year in the world and it is past time for Brazil to take a slice of this pie for itself, considering that it is an activity already carried out by Brazilians.
The Ministry of Economy has an immense responsibility in hands and a mistake can result in a great loss for the country. That’s why public debates are essential.
Udo Seckelmann
Lawyer at Bichara & Motta
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Source: GMB
