The long-awaited regulation of the fixed-odd sports betting market, popularly known as bets, became a reality with presidential sanction on December 30, 2023. Now, the Ministry of Finance is moving to create the National Gaming and Bets Secretariat until the end of the month.
The body’s role will be to monitor the sector, authorize operations, monitor taxes and prevent money laundering.
38 positions were released for the new Betting Secretariat
Thus, after intense negotiations with the Ministry of Management and Innovation, the Treasury obtained the release of 38 positions for the secretariat.
Therefore, the team will be mixed, made up of relocated public servants and new hires. In addition, private sector professionals in positions of trust may also be called upon.
The appointment of the secretariat will be permanent and made official by means of a decree. The name of lawyer José Francisco Manssur, current special advisor to the Executive Secretariat of the Ministry of Finance, is being considered to lead the initiative.
At the Ministry of Sports, 12 employees are expected to be hired.
They will have to combat match manipulation and manage the transfer of revenue to sporting entities. This way, the total will be 50 servers, divided between the two folders, highlighting the scope of the project.
The installation of the Gambling Secretariat needs to be quick, as it will also supervise Caixa lotteries and the resumption of Lotex. This measure will increase responsibilities beyond sports betting.
The urgency is justified by the current overload of the team, made up of approximately 15 employees.
Agency for Integrity and Combating Addiction
The government, in addition to the secretariats, is evaluating the creation of an integrity agency to monitor betting and lotteries.
With regard to combating ludopathy (gambling addiction), the Ministry of Health, responsible for mental disorders, will work in collaboration with the Ministries of Finance and Sports. It will not be necessary to create a new body.
The operational monitoring system, currently in the testing phase, will be managed by the Treasury. Recently, representatives from 134 companies expressed interest in working in the sector in a meeting that preceded the launch of the system.
Revenue and tax projections from betting
The Treasury aims to increase revenue through taxes on online betting, aiming to meet the goal of zero fiscal deficit. The initial projection for 2024 was conservative, estimated at R$728 million.
However, with the inclusion of online gaming, which represents 65% of revenue, the department hopes to raise billions.
The initial concession value for authorization to operate bets is R$30 million, with each grant valid for five years.
Bookmakers will pay 12% of the proceeds, while bettors will contribute 15% of the amount obtained from the prize pool.
The law, sanctioned at the end of December, brought more clarity to the scenario. The government, after pressure and reports of fraud, acted to regulate the market.
Thus, with the creation of the National Gambling and Betting Secretariat and the projection of significant revenue, the sports betting market in Brazil is about to enter a new phase.
Therefore, the measures taken by the government aim to not only regulate but also ensure integrity and safety in this expanding sector.
