The process of regulating sports betting has been making waves in Brazil. With the current government optimistic about the sector, we have a high possibility of having a regulation by the end of the year, but some differences may end up delaying the debate about betting on sporting events.
There is currently a clash between the Minister of Finance, Fernando Haddad, and Planalto. The politician wants to speed up the process to send a Provisional Measure later this month, while the Planalto Palace intends to wait to send the proposal that addresses the matter.
The Estadão recently published a news item that portrays this divergence and explains in detail the processes that are being carried out for the sports betting regulation.
Read the news on the sports betting regulation in full
The Ministry of Finance clashed with the government’s political area regarding the regulation of sports betting in Brazil. While the Planalto Palace wants to wait to send the proposal that deals with the matter, the portfolio commanded by Fernando Haddad is in a hurry and defends that a provisional measure (which has immediate effect) be sent later this month to help with the collection.
In Planalto, there is provision to submit a bill only after the end of the CPI that investigates irregularities in sports betting, which should take months.
For members of Haddad’s team, however, the extra period is part of a move by companies that want to remain irregular in Brazil in order to continue without paying taxes and without adequate supervision of match fixing.
In addition, the Treasury alleges that companies that intended to enter Brazil are giving up because of the delay in regulation.
As Column showed, the Planalto initially studied the regulation of betting after the approval of the fiscal framework in the Chamber, through an urgent bill. The PL would be necessary to allow the creation of a regulatory agency. But now, you can wait for later.
The MP, on the other hand, has immediate effect and is more favorable to guarantee collection quickly, as the economic team wishes. The way out could be to slice the proposal and forward a part through the MP and another through the PL.
The Public Prosecutor’s Office at the Federal Court of Accounts (TCU) demanded, in March, the regulation of the sector. In the representation, attorney Lucas Furtado stated that there is “an omission by the public authorities to regulate the activity of promoting online sports betting” and that this could no longer be perpetuated.
“This lack of regulation can cause billionaire damage to public coffers,” declared Furtado.