Brazil still playing catch up says Ministry of Sports official
Giovani Rocco, the Secretary of National Sports Betting and Economic Development of Sport, has argued that the government is still playing catch up in its fight against illegal gambling due to the delays in regulation under the previous government. Speaking at the Consumer Defence Commission of the Chamber of Deputies, Rocco emphasized that the sports betting market has been regulated for only 11 months.
“It is yet another market that was authorized to operate in December 2018, through a law approved by this House and the Federal Senate, which would authorize the exploitation of fixed-odd betting in Brazil. There was a requirement in the original law that the government should regulate it within four years, initially set for two years and then extended for another two, which was not done.”
According to a Ministry of Sport press release, Rocco stated that the operation of the lottery service in Brazil, whether numerical forecasting, instant, or fixed odds, is a public service concession. “What did we end up with? A legislative authorization with a determination for the Executive to regulate this, which was not done. What did this lead to? The creation of over 20,000 betting sites in Brazil, a shocking number, as this is a public service concession. The Ministry of Finance, the body responsible for regulation, has already blocked more than 23,000 illegal betting sites in Brazil. I brought this history to highlight the vulnerability that Brazilian consumers face.”
According to Rocco, in this regulatory process, implemented at the beginning of President Lula’s government, “we had the task and mission to regulate this market, which is considered the second largest betting market in the world. We are currently second to the United States if we add both legal and illegal flows. This regulation led to the creation of these numerous illegal sites, resulting in a loss of control over Brazilian betting and financial dependence of football teams on sponsorships,” he said.
“I could not fail to make this record here in defence of the allocation of resources. And for Parliament to have the sensitivity to calibrate the strength and capacity to legislate on this specific point, which is to assist the Executive in confronting illegal betting houses, as this is a result of a long period without implementation, and we are now facing this challenge. The Legislature needs to have the calmness to view the market as a whole, to make the necessary adjustments, protecting the consumer, the Brazilian people, and this economic activity,” he added.
Rocco made his statements during a discussion on the measures aimed at ensuring legal security and protecting consumer rights in the fixed-odds betting market. The public hearing was requested by Deputy Daniel Almeida. In his justification for requesting the hearing Almeida also highlighted that betting has been occupying an increasing space in the Brazilian market, “requiring the Legislative Power to establish regulations that ensure not only legal security but, above all, the preservation of consumer rights.”
Participants in the meeting included other key officials from a number of government departments and agencies including the Department of Freedom of Expression Promotion, the Department of Consumer Protection and Defence and the General Coordinator of Responsible Gaming Monitoring. Also present was a representative from the National Association of Games and Lotteries, as well as other business representatives and officials from other state and government departments.
