Brazil.- 16th January 2024 www.zonadeazar.com The eagerly anticipated regulation of the fixed-odds sports betting market, commonly referred to as bets, received presidential sanction on December 30, 2023, marking a significant development. Subsequently, the Ministry of Finance is now actively working towards establishing the National Gaming and Bets Secretariat by the end of this month.
Role of the Secretariat:
The primary functions of the secretariat will encompass monitoring the sector, authorizing operations, overseeing taxes, and preventing money laundering.
Positions and Team Composition:
A total of 38 positions have been allocated for the new Betting Secretariat following negotiations with the Ministry of Management and Innovation. The team will comprise a mix of relocated public servants, new hires, and private sector professionals in positions of trust.
The appointment of the secretariat’s leadership will be permanent and formalized through a decree. Lawyer José Francisco Manssur, the current special advisor to the Executive Secretariat of the Ministry of Finance, is under consideration to lead the initiative.
Ministry of Sports Hiring:
The Ministry of Sports is expected to hire 12 employees who will focus on combating match manipulation and managing revenue transfers to sporting entities. The combined team for both folders will consist of 50 servers, emphasizing the scale of the project.
Urgency and Scope:
The swift installation of the Gambling Secretariat is essential as it will also oversee Caixa lotteries and the resumption of Lotex, expanding its responsibilities beyond sports betting.
Integrity Agency and Combating Addiction:
The government is contemplating the creation of an integrity agency to monitor betting and lotteries. To address gambling addiction (ludopathy), the Ministry of Health, in collaboration with the Ministries of Finance and Sports, will work together without the need for a new body.
Operational Monitoring System:
The Treasury, overseeing the operational monitoring system currently in the testing phase, aims to manage it efficiently. Representatives from 134 companies have expressed interest in working in the sector.
Revenue and Tax Projections:
The Treasury aims to boost revenue through taxes on online betting, targeting a fiscal deficit of zero. With online gaming contributing 65% of revenue, the department anticipates raising substantial funds. The initial concession value for authorization to operate bets is set at R$30 million, with bookmakers and bettors contributing 12% and 15%, respectively.
With the creation of the National Gambling and Betting Secretariat and ambitious revenue projections, Brazil’s sports betting market is poised to enter a new phase. These government initiatives not only seek to regulate the sector but also ensure integrity and safety in its burgeoning landscape.