Legislation
Brazil – IBJR says sports betting bill presents threat to sustainable industry
By James - 2 October 2023
The Brazilian Institute of Responsible Gaming (IBJR) has issued a statement criticising the new sports betting bill. The IBJR said that while bill 3626/2023 was important and marked a significant step forward it could drive players to offshore markets and presented a threat to the viability of a sustainable industry.
“Unfortunately, PL 3626 conceptually reproduces the same model adopted in countries where there is currently limited government revenue and, at the same time, thriving parallel betting markets,” The IBJR argued.
“The text, if approved in its current form by the Senate, will make it impossible for companies to create competitive and attractive products for consumers, with prizes unable to compete with those offered on the illegal market. These are the cases emblematic of countries like Portugal and France, where almost half of bets are placed on unregulated sites, the vast majority of which are based in other jurisdictions.
“To match successful markets, maximizing government revenues and protecting sporting integrity, betting itself and combating money laundering, Brazil must change course and take the following measures: extend the duration of the operating license, readjust tax rates, adjust inspection rates, adapt licensing, in addition to reviewing the calculation for Withholding Income Tax.
“The bill approved by the Chamber represents an incentive for operators who are not interested in obtaining a license and paying taxes in Brazil. They know that, if the text is not changed, a prosperous irregular market will be guaranteed, where legal operators will not be able to compete.
“Given this scenario, IBJR members are re-evaluating potential investments in the country, including in sports and other related projects.
“We have repeatedly shared all these considerations with Executive and Legislative leaders in Brasília, but, in practice, so far our concerns have not been accepted.
“Fortunately, there is still time to implement a policy that aligns the interests of Brazilian society, the Government, consumers and the companies that make up the national gaming and betting ecosystem.”
The Brazilian Institute of Responsible Gaming (IBJR) was established earlier this year to unite some of the leading global brands in the sports betting sector, which have joined forces in Brazil to contribute to the discussion and development of the national gambling market. Bet365, Flutter, Entain, Betsson Group, Betway Group, Yolo Group, Netbet Group, KTO Group and Rei do Pitaco are the founding operators of the entity. Combined, they operate in more than 100 countries.
