MARKET INSIGHT: SPORTS BETTING: BRAZIL
In Brazil, a provisional measure is a legal act through which the President can, ‘in important and urgent cases,’ enact laws effective for a maximum of 60 days without approval by Congress. Te provisional measure may be renewed once for an additional 60 days after which, it will cease to be in force unless law makers give it the green light. Tis means that the clock is already ticking for a bill that will need to be discussed and analysed in mixed select committees made up of lawmakers who all have widely different views on the issue. Ten it will need to be approved by both the Senate and the Lower House. But will there be enough consensus on the issue?
G3 will be following the bill every step of the way as it now embarks on what could well prove to be a very bumpy ride.
SENATOR PROPOSES WIDER EXPANSION
Long-time supporter of gambling reform Senator Angelo Coronel has put forward a number of amendments to Brazilian president Luiz Inácio Lula da Silva’s sports betting provisional measure (MP 1,182/2023).
Senator Coronel wants the bill to encompass not just sports betting, but bingo halls, the animal game, and casinos as well. Specifically, according to Amendment 223/2023 the senator proposed the repeal of provisions related to gambling as enshrined in the Criminal Contravention Act, which dates to 1941. Lotteries and horse race are the only forms of gambling permitted under current rules.
When it comes to the animal game the senator argued that now is the perfect time to regulate it.
“It is opportune, therefore, that the National Congress seize the moment and take a position on this issue, removing from our legal system a provision that contradicts a practice widely known and accepted by society. With this evolution, our criminal legislation will adapt to the daily reality of Brazilians and it will be possible to regulate this other economic activity with strong potential to generate revenue quickly.”
“The Federal Government projects gains from sports betting of around R$2bn in
2024 and estimates, with the regulation of other forms of games and the
implementation of casinos, it will raise tens of billions, considering the sector’s
potential impact on GDP and taking countries like Italy as a reference.”
Te animal game (jogo do bicho) is the largest illegal lottery in the world. It is estimated that the game generates between US$350m to US$800m a year, with around 20 million people playing the game every day.
Combined bingo halls, casinos and the animal game would, according to the senator, provide a huge boost to government coffers.
“If the Federal Government projects gains from sports betting of around R$2bn already in 2024, the estimates with the regulation of other forms of games and with the implementation of casinos raise this projection to tens of billions, considering the sector’s potential impact on GDP and taking countries like Italy as a reference,” he said.
MIXED SPORTS BETTING COMMISSION
Senator Jorge Kajuru has announced that he will be the president of the mixed commission presiding over the new sports betting measure. While a date for the commission to go into session has yet to be confirmed, the congressman has already said that some changes will be made to the text sent by the government.
“Tere will therefore be a mixed commission [which has], already defined my name as president of this mixed commission for having been the first senator to enter with a bill for the regularisation and taxation of these houses and the discussion about the manipulation of results,” confirmed Kajuru.
Te senator is the author of a sports betting bill that he filed in March along with Senator Hamílton Mourão. Te bill aimed to establish rules for sports betting companies in the market. In May, the senator defended what could be a more business-friendly approach than the proposals initially put forward by the government’s economic team, led by the Minister of Finance, Fernando Haddad, which had set out stipulations that online operators would have to pay R$30m for a licence to operate for five years.
“Tere are people in the business interested in paying taxes, they don’t want to evade, they just don’t want astronomical, abysmal licences, like Minister Haddad’s R$30m for each bookmaker. So our proposal is that there be a licence value proportionately measured according to the size of each bookmaker. Minister Haddad was very responsive. He accepted this dialogue, “Kajuru said at the time.
Te government published the MP (provisional measure) that regulates sports betting on June 25. Te rules are in force, but must be analysed within 120 days by the National Congress or they will lose their validity.
Kajuru indicated that the government’s text should be modified, because he considers that the MP falls short when it comes to match- fixing.
WIRE / PULSE / INSIGHT / REPORTS P77
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