The budget is strategic to meet the fiscal targets planned by the economic team. But the idea is that there is also a bill to deal with the operation of bookmakers in the country.
The Ministry of Finance stated that the text of the PM is being evaluated by the Civil House and other ministries involved and should be signed by the President of the Republic after consideration by these bodies. “Recalling that the PM will deal with more urgent issues such as taxation rules and the application of penalties. The creation of the Betting and Lotteries Secretariat will be the object of a bill,” informed the folder to news outlet R7.
According to government planning, the secretariat will be a structure linked to the Treasury and will be responsible for analyzing documents for the accreditation of betting companies in the country. The folder will also monitor the volume of bets and collections to control the betting market. The government is studying whether to send the Executive’s own project or whether to include the topic in another proposal that already discusses the topic in Congress.
One possibility is to use a project by senators Jorge Kajuru (PSB/GO) and Hamilton Mourão (Republicanos/RS). According to the senators’ proposal, betting companies will pay authorization licenses to the Finance Ministry and will need to have a branch in Brazil. It is anticipated that betting operator firms will have auditable systems to prevent fraud. Directors, sports managers, coaches, athletes, referees, as well as owners and employees of bookmakers, will not be able to participate in the games to avoid manipulation of results.
In the Senate, the newly created Sports Commission (CESP) will hold a public hearing to discuss the issue. Author of the request for the hearing, Senator Romário Faria (PL-RJ) defended the need to guarantee transparency, legality and the fight against illicit practices with the expansion of the sports betting market.
The goal is to “promote a broad and in-depth debate on these issues, involving representatives of sports institutions, government authorities, companies in the sector, specialists and other interested parties,” highlighted the senator.
What does the PM say?
Although it has not yet been released, part of the content of the provisional measure has already been disclosed by the government. According to the proposal, in order to operate in Brazil, companies will need to have operations enabled in the country. Bets can also only be placed on official competitions, i.e. those organized by federations and regulated leagues.
“Companies will be taxed at 16% on the Gross Gaming Revenue (GGR), the revenue obtained from all the games played, subtracting the prizes paid to the players. exemption of R$L 2,112 (US$ 440)”, details the government.
Collections from fees and taxes will be earmarked for areas such as public safety, basic education, sports clubs and social actions. Part of them, for example, will go towards actions to combat match-fixing, money laundering and other crimes that may be associated with betting.
Assessments
The regulation of the topic, in the opinion of specialists, is urgent. “The Brazilian state has already spent too much time regulating an issue that should have been subject to discipline a long time ago. This has led to a series of lost opportunities, both from the point of view of revenue and job generation, and of the regular and safe offer of sports betting in Brazil,” evaluated the expert in gaming law and lawyer Fabiano Jantalia.
Lawyer Tiago Gomes, specialist in gaming and betting regulation, adds that tax collection based on regulation is important to achieve fiscal balance. The government counts on the beginning of collections as one of the ways to comply with the established fiscal targets.
“Regulation generates many other dividends for the country. Measures such as requiring companies to have their headquarters in Brazil ensure not only the generation of jobs in the country. But also provide greater security for gamblers, who are consumers of this service, in addition to offering greater transparency and effectiveness of measures to prevent money laundering, as they will be subject to the legal regime of financial operations carried out in Brazil, one of the most sophisticated and well-regulated financial systems in the world,” completes Gomes.
The counterpart for operators, in Gomes’ assessment, is transparency about the requirements for legally operating in the country, objectively marking out those who will be able to continue operating and those who, because they do not meet the requirements established in the regulation, will not be able to operate in Brazil.
Source: R7
Translation source: GMB
