At a recent meeting of the National Council for Financial Policy (Confaz), a significant proposal was presented. Dario Durigan, executive secretary of the Ministry of Finance, suggested the formation of a new Working Group (GT) to discuss state regulations for sports betting.
Coordination between federative entities is essential to guarantee the integrity and security of sports betting. Furthermore, it is essential to prevent possible tax evasion of state revenues.
Therefore, a fragmented regulatory environment could lead to harmful competition between states. This would result in a situation similar to the well-known “fiscal war”, negatively impacting revenue and market efficiency.
Guidelines for cooperation between and between federative units on the regulation of sports betting
Therefore, the federative dialogue proposed by the Ministry of Finance, through the creation of a GT, is an important step. The objective is to seek consistent and harmonized regulation of sports betting at the state level.
The regulation of sports betting in Brazil was prepared by the Treasury and brings a series of advantages. It not only ensures the integrity and security of the market, but also protects bettors by providing a transparent and trustworthy betting environment.
Furthermore, coordination between federal entities ensures a fair distribution of tax revenues. Therefore, with the promulgation of Law 14,790/2023, which establishes general guidelines for the activity, cooperation between the 26 federative units and the Federal District becomes essential.
The government estimates that it will be able to raise up to R$2 billion in 2024 with the regulation. But for the following years, this estimate is even higher, with annual revenue varying between R$6 billion and R$12 billion.
These projections consider the growth of this segment both in the world and in Brazil. The proceeds will be distributed to several areas, including sport, tourism, public security, social security and education.
