An initiative was presented by the Brazilian Sports Betting Association wherein they express their apprehensions about the upcoming regulation and advocate for transparency.
Anticipation for the regulation of sports betting in Brazil is growing rapidly. It was recently disclosed that President Lula may introduce the provisional measure upon his return from his European tour. Nonetheless, certain voices express dissatisfaction with the progression of the process.
The Brazilian Sports Betting Association (ABAESP) issued a statement advocating for public involvement in the discussion pertaining to the provisions and actions designed to govern the sector. ABAESP is using a petition on change.org to gather 25,000 signatures to enhance transparency in the process.
In the text accompanying the initiative, ABAESP clarifies that after the legalization of fixed-odds betting through Law 13,756/18, it was mandated that the activity be regulated. They mention that the topic has been debated in various circles, including government, institutions, politicians, businesspeople, sports, journalism, and consumers. Nonetheless, ABAESP believes that society needs more specific details on the matter.
An area of particular concern for ABAESP is the tax that would be imposed on bettors. They fear that such a measure could deter individuals from betting with licensed bookmakers in Brazil, lead to a decrease in job opportunities, promote informality within the market, and pose risks to consumer safety.
Moreover, the organization expresses unease regarding the additional taxes on the Gross Gaming Revenue (GGR), which add up to 31 percent – more than double the international average. According to them, this taxation could have a detrimental effect on the financial sustainability of the companies operating in the sector, as well as on the overall competitiveness of the market. Consequently, this may influence the odds offered by operators to bettors, ultimately reducing the possibility of consumer profit and increasing demand for unlicensed operators in Brazil.
ABAESP notes that the federal government has not been transparent regarding the official text of the provisional measure they intend to introduce, even with the request for greater openness. They emphasize the importance of publishing the draft before the provisional measure is released so that individuals can meticulously examine it and provide the necessary contributions towards establishing a fair and competitive sports betting market.
ABAESP believes that the proposed regulation should be accessible to the public, and that a public consultation should be initiated so that all stakeholders interested in a well-regulated activity can contribute to the discussion.
Furthermore, the association pledges to collaborate with the federal government and other regulatory bodies to formulate a suitable regulatory framework that fosters security, transparency, consumer protection, and responsible conduct in the sports betting industry in Brazil.