SiGMA Focus Brazil brought high-quality content spanning regulation, compliance, fintech, and innovation virtually in light of COVID-19. Present on the panel was Luiz Felipe Maia, founding partner of FYMSA Advogados; Witoldo Hendrich Junior, founding partner of Henrich Advogados; and Magnho Jose, president of the Brazilian Legal Game Institute. Could 2022 be the year Brazil sees its first sports bet?
BNDES, regulation and current events
In overview of recent events surrounding Brazilian Development Bank (BNDES), Felipe explained that the BNDES henceforth will be “responsible for conducting the privatisation process for sports betting, under coordination and monitoring of the Ministry of Economy. So, this process is now on the government's priority agenda - and it must move quickly! We hope that in the coming months we will have specialists contracted by BNDES to carry out regulatory and economic studies to define a model”.
He further hopes for a model to be defined in the coming months and ultimately expects regulation to be ready by next year that would “will probably bring the licensing process”.
There has also been great momentum in the casino discussion for Brazil following talk amongst the Tourism Development Studies Committee regarding the ideal casino model.
Witoldo adds to this topic addressing developing integrated resorts in Brazil saying: “I would like to see this move towards a scenario where all types of casinos were legalised and not just those integrated into resort structures, as we see in some places around the world”.
Illegal gambling in Brazil
While addressing legalisation, Magnho addresses the issue of illegal gambling prominent in Brazil, particularly the notion of legalising all modalities and verticals.
"I think this is an extremely important step, although I believe that we started off wrong because regulated markets were matured first, and we then legalised and regulated online gambling. Here in Brazil we started on the roof by initially legalising sports betting and leaving all other modalities on the margins of hiding," Magnho stated.
Brazil's first sports bet
Another onion peel discussed during the thought-provoking panel addressed when Brazil could potentially see its first sports bet. Felipe argues: "I believe that the first half of 2022 we will see the first sports bet being made by a Brazilian operator."
Witoldo chimed into the discussion affirming: “My bet, my guess, is the second half of next year. I think we are going to have something concrete”. He further clarifies: “For me it is more about a regulated Brazilian environment with a Brazilian company behind that business.”
Magnho believes that there is a process already in the works and will depend on the necessary adjustments to the legislation, from the study of the BNDES, that was passed in 2018: “I believe that we will have this first sports bet, in a company based in Brazil, that is to say based on Brazilian legislation, in the first half of 2022”.
Source: SiGMA
