Wire SOUTH AMERICA
Brazil - More sports betting bill delays The Ministry of Justice has claimed as part of its portfolio the regulation of sports betting. The regulation of sports betting until now was has come under the responsibility of the Ministry of Economy. The information was revealed to local news portal VEJA by companies working in the sector. The transfer of responsibility from one ministry to another could delay the process until 2023.
The outgoing government had until December 12 to finalise the process of regulating sports betting in Brazil, according to the law enacted by then President Michel Temer on December 12, 2018. Law number 13,756 requires the Ministry of Finance (currently the Ministry of Economy) to promote the regulation of sports betting within a time limit of four years. The bill seeks to raise additional income for the government by green lighting sports betting and gave the Ministry of Finance initially just two years to get sports betting up and running (although this could be extended for a further two).
Delays look likely either way. While Bolsonaro went on record recently saying that the sports betting bill was nearing completion its approval will be hampered by a more conservative National Congress as the country’s conservative bloc made significant gains in a Congress that it already dominates during the recent election.
Currently, both the National Congress’ senate and chamber of deputies have been controlled by allies of far-right President Jair Bolsonaro. Both belong to centre-right—and some right wing—groups called the ‘Centrao,’ or ‘Big Center.’
However, now that Lula has been elected, the bill could be abandoned altogether as leftist Lula is far more likely to give state-owned monopoly holder, CAIXA, more control over the gambling industry as opposed to the private sector. In addition, there will likely be no movement on the bill as the Presidential elections mean that the government has gone into recess until December 22nd.
Brazil - Sportingtech supplies new operator Sportingtech has signed an agreement that will see a new operator partner in Brazil supplied with its sportsbook product. The collaboration will allow the brand to establish a presence in Brazil’s online sports betting market, taking advantage of Sportingtech’s superior expertise and knowledge of operating across multiple LatAm markets. The ambitious start-up is heavily backed by a consortium of business associates and intends to strategically grow its brand through an extensive marketing strategy that includes the use of influencers, media channels and affiliates, all underpinned by the scalable and powerful qualities of the provider’s leading Quantum platform.
The new partner's existing assets in the country, combined with Sportingtech’s sportsbook offering, will help it to extensively market its brand, with an aim of going live by early 2023.
P10 WIRE / PULSE / INSIGHT / REPORTS
Online State-Run Monopoly Proposed
While Uruguayan lawmakers debate the regulation of online gambling, the president of La Banca proposes allowing the state to run a single casino site.
Te union’s position is that online gambling must be regulated or state revenue will drop due to international companies circumventing taxes.
URUGUAY LEGISLATION
While Uruguayan lawmakers debate the possibility of regulating online gambling, the president of the country’s organisation La Banca which runs a variety of popular numbers games, as well as sportsbetting, and instants, Roberto Palermo, has proposed allowing the state to run a single online casino site.
Te current proposal for online gambling would allow for the launch of several private platforms via landbased casinos, which for him “strongly increases the risks of pathological gambling”, while “they would reduce the income of the State.”
Consequently Palermo argued that the state be the sole operator of online casino gambling in order to ensure that it takes place under the strict parameters of responsible gaming.
Palermo said: “We made an approach, already in the Chamber of Senators and also in the Chamber of Deputies, questioning the approach, the framework of this law, because we understand that it has an implicit contradiction: multiple platforms cannot coexist while responsible gaming guidelines are effective.”
Palmero added that competition meant that the
well being of the customer would inevitably fall by the wayside. To avoid this happening online casino games should follow in the footsteps of the sports betting platform Supermatch.
His comments come after a strike lin October after Te National Federation of Gaming Workers (FENAJU) stopped selling lottery tickets in order to call for a “serious debate” about the online gambling bill now under discussion in Parliament.
Te union’s position is that online gambling must be regulated since, if it is not, “state revenue will drop”, because international companies will continue to operate without paying taxes.
Aside from horse racing, the only way for locals to place a legal bet is via the Codere sports betting shop linked to the Hipódromo Nacional de Maroñas racetrack as well as a few other outlets and via Supermatch the first and only officially sanctioned sports betting site in Uruguay. Te site, which is locally run and was developed locally, allows Uruguayans to bet on a number of sporting events including football from a number of leagues around the world and is seeing rising revenues.
Chile Monticello claims online gambling is illegal
Gran Arena Monticello’s lawyer, Carlos Gajardo Pinto, has published a letter aimed at online gambling sites operating in Chile. In a text, he stated that international operators “try to position it ” so that their operations do not appear illegal, but said: “Te law is quite clear in prohibiting all games of chance except for what is explicitly established in the Penal Code: the Chilean Polla de Beneficencia, the Concepción Lottery, horse betting and casinos authorised by the Superintendence of Gaming Casinos (SCJ)”.
According to his analysis, online betting operators are in violation of numeral 19, article 63 of the Chilean Constitution, which “indicates that gambling and betting can only be regulated by law.” He also cited articles “275- 277 and following” of the Penal Code, which “punishes those who operate games of chance without
authorisation from the State with jail and fines.” Combined these articles define what constitutes illegal gambling in Chile.
He summarised by saying that: “As a general rule, the law prohibits any natural or legal person from operating games of chance. Tus, there is express regulation for online games of chance: they are prohibited and their commercial exploitation is a crime,” he said.
Te lawyer compared this to the casino sector “which not only pay taxes, contributing in equal parts to the municipalities and regional governments where they are located, but also generate jobs in regions and take a series of safeguards to avoid the exposure of vulnerable groups”, whereas the 900 websites and betting platforms estimated to be operating in the country “offer online games of chance without paying taxes.”
Peru
A Peruvian operator has alleged irregularities in a casino tender in the country. Te Meier Corporation (Corporación Meier) filed a complaint before Chile´s competition authority, the Tribunal for the Defence of Free Competition (TDLC). Te Peruvian operator, which is the current licence holder for the casino located in Talca and owns a share of the Puerto Natales Casino, denounced a series of irregularities regarding the bidding rules for the last two public tenders carried out by the Gaming Board (SCJ).
According to company lawyers, the licensing process, which allowed the renewal of 10 of the 14 available licences, facilitated collusion and the continued dominance of local and already established operators in the market.
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