The study estimates that of the R$11.6 billion (US$ 2bn) , almost R$8 billion (US$ 1.4bn) could come from small and medium-sized operators that are outside the formal system because they are unable to bear the costs of the federal grant. In theory, the municipal grant would be cheaper, which would encourage these companies to formalize. With legalized operations, the companies would start paying taxes, which would go to the federal government.
“The time has come to ensure respect for municipal autonomy and disseminate good practices regarding the regulation of lottery activity in Brazil,” Analome’s legal director, Sofia Signorelli, told Coluna.
How authorization for 'Bets' works today
Currently, the operation of sports betting and online games is only authorized at the national and state levels, by the Secretariat of Prizes and Betting (SPA), linked to the Ministry of Finance, and by state governments.
The rules for the operation of these companies were established in the so-called “Bets Law” approved in 2023 by Congress and still in the process of being regulated by the federal government.
Even if the government decided to regulate bets at the municipal level, however, there is legal controversy over the constitutionality of municipalities operating bets.
Debate on municipal 'Bets' reaches the Judiciary
The discussion on the legality of municipal lotteries reached the Federal Supreme Court (STF) in March, when the Solidariedade party filed a lawsuit against the exploitation of 'Bets' by municipalities.
The party questions the constitutionality of laws and decrees of some municipalities that establish their own betting systems and claims that the Union has exclusive jurisdiction to legislate on consortium and lottery systems. The Solidariedade lawsuit in the STF is being reported by Minister Kassio Nunes Marques.
The Attorney General's Office (PGR) also filed a lawsuit in the Supreme Court against rules that allow the exploitation and disclosure of 'Bets'.
Advantages of legalizing municipal 'Bets'
Tax expert Menndel Macedo defends the legalization of municipal lotteries as a more efficient and faster way to increase revenue and says that the potential revenue from this market could even be a possible alternative to the taxation of large fortunes, already considered by the government.
“Regulating 'Bets' at the municipal level is recognizing an economic reality that already exists and that has even been the subject of federal regulation. Denying municipalities this power violates the principle of autonomy and delays the use of a legitimate source of public revenue. It is an intelligent, modern measure that does not increase the tax burden on those who already contribute,” Menndel told the Column.
Risks of legalizing municipal 'Bets'
For lawyer Ticiano Gadêlha, a specialist in regulation, however, there are risks in decentralizing the betting sector without adequate infrastructure. “The country has barely begun to monitor the market and there are already discussions about passing on this responsibility. Without structure and legal certainty, this could worsen a scenario that is still unstable,” he told Coluna.
Source: Coluna do Estadão
