During this week, the Chamber of Deputies should consider Bill No. 3,626/23, which regulates sports betting and online gaming in Brazil. In the IBJR’s understanding, the consequences of this decision could be profoundly harmful to the country.
While the vote will also allow parliamentarians to rectify the Senate’s decision, which opted to exclude online games from the regulatory process.
“It is imperative that the Legislative Branch induces the Federal Government to exercise its full control over the sector”, says the official note published this Monday, 18.
Estimate on regulated betting
According to the entity, “estimates indicate that, if we only consider regulated sports betting, regulating and monitoring only a percentage between 25% and 30% of the market”.
This would be viable, as, on average, online games account for around 70% of revenue for companies in the segment.
The statement continues: “with the exclusion of this modality, the tendency is that for every R$10.00 bet on the internet environment in Brazil, R$7.00 will be in the informal market.
This disproportionality, in addition to leaving society exposed to abuse, due to the lack of explicit control by the Brazilian State, if maintained, will impact the interests of companies in the sector”.
IBJR’s concern
Therefore, companies will start to reevaluate investments in Brazil, since the global market standard is always to offer both types of product: sports betting and online games together.
“Regulating a single vertical and leaving the other without support, regulation and supervision drastically reduces the size of the formal market.
Consequently, the level of interest from large global players and potential national investors”, completes the note.
IBJR understands the concern presented by senators when removing the online casino and other electronic games from the text to be considered by federal deputies.
“However, we believe that based on the international experience of the associated companies, which together operate in more than 40 countries, comprehensive regulation is the only way to create a safe environment for this new sector of the national economy to develop in a sustainable manner, combating today’s thriving informality.
We hope that the return of the project to the Chamber of Deputies will enable the inclusion of the two modalities that make up the sector in the final text”, concludes the note.
