The Minister of Finance, Fernando Haddad, requested that the Attorney General’s Office (AGU) contest the issuance of state grants to betting houses, also known as bets. The betting regulation process is being processed in the Senate.
According to Metropoles, the betting bill was approved in the Chamber of Deputies and is now being analyzed in Senate committees.
Special advisor José Francisco Manssur, in charge of regulation at the Treasury, met with the president of the Senate, Rodrigo Pacheco, to discuss the matter.
Haddad’s intention in the regulatory proposal is to make it clear that only federal grants will grant authorization to explore online betting in Brazil.
The Ministry of Finance understands that judicialization of the issue would be the worst possible outcome. This would impact the revenue forecast for next year.
Also according to Metropoles, the Treasury even tried to articulate an amendment to the proposal approved by the Chamber. However, the idea appeared at the last minute and there was no time to negotiate approval with deputies.
The current objective is to find a senate that is willing to insert this amendment into the text.
The minister’s concern increased after the Rio de Janeiro State Lottery (Loterj) claimed that it has the authority to grant national licenses to bets, upon payment of R$5 million.
Furthermore, Loterj launched a notice in April and began granting five-year operating registrations to companies.
Pixbet, a company that sponsors two of the most popular football clubs in Brazil (Flamengo and Corinthians), was one that agreed to pay for the license.
What does the current betting regulation project say about grants?
According to the betting regulation project approved by the Chamber of Deputies, the grants last for three years with an acquisition value of R$30 million.
These conditions worry the market, which claims the business is unviable and encourages the illegal market in the country due to high taxation.
