The increase in sports betting is increasingly evident in the Brazilian scenario. Recently, the Minas Gerias State Treasury Department launched, as a modernization of Loteria Mineira, Lotominas.bet – a new sports betting platform.
The main issue is that this new platform will operate in an environment without any type of regulation or legal security, and may have some problems in its operation and even inspection.
The news portal O Tempo published an expert analysis on this new process of ‘modernization’ of the Loteria Mineira, detailing the main aspects to be considered and the possible problems that will arise.
Check out the full news about Lotominas.bet
With the argument of modernizing the Loteria Mineira, the Secretary of State for Finance (SEF/MG) launched, in February this year, the Lotominas.bet platform, which will operate in the sports betting sector.
Despite being registered in Brazil, unlike competing companies that operate in tax havens such as Curaçao and Malta, the new service offered by the Romeu Zema (Novo) government will operate in a sector that still lacks any regulation, in the so-called “grey zone” of legislation .
Currently, bookmakers operate in Brazil thanks to Law 13,756, of 2018. This legislation, sanctioned by former President Michel Temer (MDB), obliged the Ministry of Finance to regulate the sector within two years, a period that can be extended for another two years. . However, that date expired on December 12 of last year, still under the management of former President Jair Bolsonaro (PL).
Despite the scenario of uncertainty regarding regulation, the Minas Gerais government signed a contract with a private company to create Lotominas.bet – which caught the attention of lawyer Mariana Chamelette, a specialist in sports law who follows the sector closely.
“Law 13,756 brings fixed odds betting (based on real events) as a lottery modality, in the form of an exclusive public service of the Union. The STF has a decision that the Union has exclusive competence to legislate on lotteries, but does not have a monopoly on exploitation. Some States have interpreted this decision to extend to sports betting. However, considering the express text of the law, I don’t see much legal certainty in this licensing and exploration by the State of Minas Gerais”, opines Chamelette.
Understandings
Gaming law specialist Filipe Senna says that Minas’ unique approach to the subject makes even a legal assessment of Lotominas.bet difficult. “It is a two-pronged debate. There is one that understands that there is the possibility of state exploration of sports betting, while another understands that this matter is exclusive to the Union. Indeed, Lotominas presents an unprecedented situation for being headquartered in the national territory. At this moment, as the debate (about the regulation) is still open, it is necessary to evaluate and observe how this operation will be”, says the lawyer.
According to the government of Minas Gerais, Lotominas.bet received an investment of R$ 15 million. The money was paid “in full and at the risk and expense of the Intralot concessionaire”.
The management argues that the platform comes to promote the “modernization of the Mineira Lottery” and that the funds raised via sports betting will be “reverted to finance social projects carried out by the Government of Minas Gerais”, such as the State Secretariats of Health, Social Development and Public Safety.
Sector awaits regulation MP
Sources heard by O TEMPO inform that the publication of a Provisional Measure (MP) by the federal government is expected shortly, with the aim of regulating betting. The drafting of the MP involves works by the Ministry of Finance, mainly by the Federal Revenue Service, since one of the main issues concerns taxation.
Experts argue that taxes should apply only to corporate profits, without encumbering the total collected. The assessment is that legislation that is unfavorable to houses will drive them away from Brazil.
One of the MP’s points of discussion, according to sources consulted by the report, concerns sponsorship by bookmakers. There are those who defend the prohibition of advertising of brands that are not licensed in Brazil, which is seen with concern by the lawyer Mariana Chamelette. “If companies cannot sponsor and do not want to bring business to Brazil, it is money that will end up going away, including from football.”
The report questioned the Ministry of Finance about what is missing for the MP to be sent to Congress, but there was no response.
Haddad promises to regulate
Finance Minister Fernando Haddad (PT) has already spoken out in favor of taxing betting. The Lula government’s economic team wants to raise between R$ 2 billion and R$ 6 billion with the proposal, which would offset losses with the correction of the Income Tax for Individuals (IRPF). The government has committed to raising the IRPF exemption range from R$1,903 to R$2,640, which relieves low-income taxpayers, but compromises public funds.
“Let’s regulate. We readjusted the IR table, and this has a small loss of revenue, but it does. We are going to compensate with the taxation on these electronic games, which do not pay any taxes and take away a fortune from the country”, said Haddad to the Uol portal.
