Recently, the lawyers of Rei do Pitaco, Fernando Zandonadi Vasconcelos and Rafael Marcondes highlight – in an opinion article written on the JOTA news portal – the main issues of the current version of the decree for the regulation of sports betting in Brazil.
The lawyers mentioned that there is a long wait for a regulation of betting in the country, highlighting how the Brazilian market is already being observed by large companies in the segment for future investments.
“Since 2018, the global betting market has been waiting for the regulation of the sports betting market in Brazil. That year, the then President of the Republic, Michel Temer, legalized the activity of sports betting in the country, but left the regulation of the subject under responsibility of a decree, which should happen in 2022”.
“Given the expectation regarding the subject, several operators started to look at the Brazilian market as the main focus of their operations, since the country of football is, for obvious reasons, a land full of opportunities for the sports betting market. “, they add.
Fernando Zandonadie and Rafael Marcondes also analyze the main means that betting companies are using in their activities: “Football clubs, sports websites, advertising boards in stadiums, television commercials… Nothing seems to escape the imminent entry of sports betting companies in Brazil. “.
“And it is precisely these companies that will play a key role in building an environment of integrity, security and in line with the principles of compliance and responsible gaming for bettors and for free competition in the sports betting market in Brazil”, they say.
Legalization of bokmakers
The licensing of operators, which will be the responsibility of the public authorities, was also commented on by both:
“When we read the most recent version of the decree made available to the public, we realized that several technical and financial criteria were established for the granting of licenses: payment of a fee, technical certifications, proof of integrity and prevention of money laundering program, service channels to the public, responsible gaming policies, among many other requirements that, at first glance, convey a good impression to those who intend to act, as they follow good practices already constant in more mature markets”.
But of all the forecasts contained in the draft decree, one of the biggest hits by the Executive is in the definition of the model of exploitation of sports betting (or fixed quota, as defined in Law 13,756/18): the model of authorizations. This format avoids the creation of monopolies in the sector, enhances the government’s gains in terms of revenue and benefits the gambler, who may have more options for operators to choose the one that best serves them”, emphasize Fernando Zandonadie Rafael Marcondes.
What can happen after the decree to regulate sports betting?
They highlight the consequences that the actions present in the decree may bring: “The risks brought by art. 31 are many and can generate from a market reserve to the distrust of operators in the legality of the operation licensing process, which does nothing to create an environment of integrity and in line with the principles of compliance”.
“On the contrary, it only encourages illicit practices and challenges the integrity of the public authorities in charge of granting authorizations, which, by the way, is harmful to everyone: public authorities, which convey an image of distrust in their actions; the operator, who will have the suitability of his authorization questioned; and the consumer, with a lack of security about the market”, report the lawyers.
“In this line, there is another device with the potential to generate problems: art. 4, §3, I, as it conditions the operator’s approval to the presentation of technical qualification, without defining what this would be, thus leaving the attribution in charge of the Ministry of Economy by means of an ordinance”.
“The issue is sensitive, because depending on what is defined as technical qualification, a market restriction can be created. If technical qualification is limited to previous experience in the operation, we will have the absurd situation of, in Brazil, we only have foreign operators”, conclude lawyers for Rei do Pitaco.