Nowadays, the sports betting sector is on the rise in Brazil. Sports enthusiasts, Brazilians have joined the practice of betting on the internet, driven by brand agreements with the main Brazilian football clubs.
Bookmakers have been covered by a legal loophole since 2018, when fixed odds bets were authorized. The activity includes bids in which the player knows how much he will earn if he hits the result, since the prize pool is defined based on the probability of that outcome happening.
Currently, companies in the sector have headquarters abroad, which does not generate jobs or taxes paid to the country. Last Monday, the 12th, the deadline for the Federal Government to regularize the sector of “fixed odds bets” ended.
“For companies to start operating here, the Ministry of Economy would need to regulate the market. The term was two years, extendable for another two years. So, the government had until the end of 2022 to approve legislation,” explained lawyer Eduardo Teixeira, from Carlezzo Advogados, to the newspaper Extra.
According to the measures defined in 2018, a body would be created to define the rules for the operation of bookmakers in the country. “While the four-year period was running, regulation was the responsibility of the Executive Branch, through the Ministry of Economy. Now, the matter can return to Parliament, so that new guidelines can be established for the regulation of the sector”, added Teixeira.
Representatives of sports betting houses report the importance of regulation
Bookmakers must continue to act as before, that is to say with platforms hosted abroad, in places where betting is already properly regulated. According to the CEO of Galera.bet, Marcos Sabiá, regulation is essential to protect customers and responsible gaming, because it defines rules for the operation of all companies.
“It is a way of guaranteeing the companies’ responsibility towards the end user. Without regulation, we lose taxes, as consumers continue to resort to foreign companies, and customers no longer have a regulated market, which guarantees protection. For companies, it creates legal uncertainty. Regulation is a way to bring data security and protection to consumer rights, for example”.
The CEO of Esportes da Sorte, Darwin Filho, shares the same opinion. “We are looking forward to the regulation of sports betting in Brazil, an act pending since the enactment of the law that legalized the activity in 2018. We believe that the regulation will provide much more legal certainty so that we can work the market within the legal provisions of a new decree”.
The Ministry of Economy was contacted by the newspaper Extra but did not comment. Nowadays, the Federal Government estimates that around 450 sports betting houses are operating in Brazil and closing partnership agreements with sports clubs, sportsmen and influencers.
The strength of the sector can be seen during the 2022 Campeonato Brasileiro Série A both on the advertising signs in the stadiums and on the uniforms of the participating teams. After all, all 20 clubs had agreements with companies in this sector.
