Wire SOUTH AMERICA
Clubs jumping the gun in Brazil to sign football sponsorship deals with sports betting providers has drawn the government into conflict due to its own delays.
BRAZIL SPORT BETTING Clubs Regret Pre-empting Betting Go-Live
Te investigation into sports betting sponsorship deals widens as the Brazilian Attorney General’s Office commences with new probe.
Chile - Lottery block to online rejected The Supreme Court of Chile confirmed a resolution issued by the Court of Appeals of Santiago thereby rejecting an appeal filed by lottery operator Polla Chilena de Beneficencia which would have obliged internet providers block access to 23 sports betting websites.
In its appeal, La Polla Chilena stated that it had sent a letter to six internet providers asking them to block 23 sports betting websites “that currently operate in the country without the needed authorisation.” However, they indicated that they only received a response from two companies, both of which had refused to block the sites as they were protected by the principle of net neutrality.
Chile was the first country in the world to enact a law related to the net neutrality principle. Issued on August 18, 2010, the law states that public telecommunications service concessionaires that provide service to Internet access providers may not arbitrarily block, interfere, discriminate, hinder or restrict the right of any Internet user to use, send, receive or offer any content, application or legal service through the Internet, as well as any other type of activity or legal use made through the network.
The Santiago Court of Appeals had rejected the constitutional action filed by the Chilean Polla after concluding that action was inadmissible. However while the Supreme Court confirmed the decision it did order that records be sent to the Public Ministry , the Ministry of Transport and Telecommunications and the Gaming Board (SJC) so that they could investigate possible criminal offenses and law violations.
Online gaming is expressly banned under Chile’s gaming laws . However Polla Chilena the state owned lottery company operates and administers national lottery games including fixed odds sports betting game Xperto online The other company authorised to run lotteries is the Lotería de Concepción which accounts for far less of market share. Meanwhile online horse race betting is also permitted via landbased operator Teletrax.
Up until recently the SJC board has only taken action on a very small number of occasions against offshore companies marketing themselves in Chile. According to figures released by SJC there are now more than 900 offshore betting sites that offer their services locally with the total handle now standing at US$ 150 million. In July the head of the lottery Macarena Carvallo sent a letter to internet service providers, requesting them to block betting websites, linked to sporting events in Chile as they were unlicensed and had no right to offer their services in Chile.
P10 WIRE / PULSE / INSIGHT / REPORTS
Pressure is growing on media and clubs grow as Te Brazilian Attorney General’s Office (PGR) will initiate an investigation into sports betting, with a special focus on sponsorship agreements between operators and clubs.
Te request was made by the Ministry of Economy. According to local news reports, prosecutors have already met with other agencies, including the Ministry of Justice, which has already launched its own investigation into the matter.
In December the Ministry of Economy demanded that the PGR and the Federal Police initiate an investigation into the possible irregular exploitation of sports betting throughout the country, as sports betting laws had yet to be enacted.
Te investigation is being organised in the PGR’s Chamber of Consumption and Economic Order. In a preliminary analysis, two working groups will participate in the investigation.
Te 3rd Coordination and Review Chamber (also known as the Chamber of Consumer and Economic Order) covers consumer protection, competition and the regulation of economic activity. Its mission is to ensure the competitive process in the Brazilian economy.
Clubs, federations and the media were among those that were notified to present their contracts to the Ministry of Justice. Te Ministry notified 54 entities, which were given 10 business days to submit the required information regarding their contracts.
Te investigation stems from the fact that sports betting law has not yet established the rules for sponsorship agreements between bookmakers and other interested parties and has yet to be enacted.
According to the Ministry, the initiative comes from the National Consumer Secretariat (Senacon), which is looking to determine which companies have already signed contracts with clubs and other associations.
Brazil Gambling to nurse sector back to health
Te Minister of the Supreme Federal Court (STF) Luís Roberto Barroso has suspended the law that established a minimum wage for newly approved national salary floor for nurses and technicians.
Law 14.434/2022 was approved by Congress and sanctioned by President Jair Bolsonaro, but the judge asked for health companies to provide more data on the impact of the new measures. Te STF was responding to a request made from the National Confederation of Health, Hospitals and Establishments and Services (CNSaúde), which questioned the constitutionality of the law. According to the Supreme Court judge, it was necessary to assess how the new measures would impact jobs as the private sector could face financial problems, leading to a fall in capacity.
Gambling legislation is increasingly being singled out as a way to raise money to foot the bill.
While Gaming law passed in the chamber of deputies and is waiting for approval in the senate Chief Minister of the Civil House, Ciro Nogueira, and other supporters of the government, have argued that that four per cent of the collection of the “Cide-Jogos” tax will be used to finance programs and actions in the field of public health.
Te Contribution for Intervention in the Economic Domain (Cide-Jogos) will be a tax on the sale of games and bets based on the gross income resulting from the total premiums paid. Under new proposed this would be raised to as much as 12 percent for health.
Judge Barroso has already met with the president of the Senate, Rodrigo Pacheco and the President of the Chamber of Deputies Arthur Lira to discuss the issue. Both Pacheco and Lira have been pushing for gambling reform for some time and want the judge to reverse the suspension of the bill.
Chile
Congressman Frank Sauerbaum has presented a formal request to the president of the Internal Government Commission, Marta González Olea, to speed up the regulatory changes that will improve the control of the so- called “popular casinos” in Chile.
Sauerbaum aims to speed up a project that modifies Decree Law No. 3,063 on municipal revenues, in terms of patents to operate skill or entertainment machines. Te legislator said that it needed to “be discussed and voted preferably in this Commission, in which the initiative is based, in the second constitutional process.”
According to his presentation, the regulation and supervision of these gambling halls not authorized by the authorities of the sector is a pressing matter. Specifically, because “they operate gaming machines outside the formal licensing of casinos regulated by Law No. 19,995 and the Superintendency of Gaming Casinos (SCJ).”
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