During an interview at SBC Lisbon, Luiz Felipe Maia of Maia Yoshiyasu Advogados expressed strong disapproval of a ban on betting in Brazil, announced by President Lula in late September. He sees this decision as politically motivated, suggesting it disrupts the development of a legalized, regulated market.
Maia praised the quality of regulations set by the Secretariat of Prizes and Bets (SPA), which include identification and compliance protocols. He cautioned that this ban may foster a sense of legal uncertainty, deterring investors from engaging with the Brazilian market.
He highlighted that the National Congress and the Judiciary might be able to overturn the ban. Maia estimated an annual revenue loss of BRL15 billion (approximately $2.99 billion) if the ban persists and warned of the risk that bettors could shift to illegal markets. He also challenged the Attorney General's Office, which seeks BRL1 billion in compensation and BRL2.6 billion for reimbursement to the SUS (Brazilian Public Health System). He argued that operators acted legally and that the claims made do not clearly link betting activity to public health issues.
Maia commented on the current situation, stating, "It’s hard to believe we’re going through this right now, after all the effort made to have a market that is not only legalized, but regulated. Companies paid BRL30 million for a license. This feels like a politically driven act aimed at dismantling a resilient industry."
He noted the reactions he received from international peers during recent events in France and Portugal, with many expressing disbelief over the situation, leading to a growing distrust towards Brazil's stability in economic governance.
Reflecting on the quality of Brazilian regulations, he stated, "Brazil has done a very good job of regulation. Brazilian regulation today is among the best in the world… It’s a shame that things have followed the path of prohibition, because I believe that the Brazilian market has the potential to become a benchmark for the entire world."
Addressing President Lula's stance that a lack of proper market development could result in further bans, Maia characterized it as a decision driven by electoral motivations. He challenged whether similar measures could apply to other industries that have faced public scrutiny.
Maia added, "The dramatic speech given by the President about individuals losing their lives due to debt caused by gambling calls for scrutiny. Banning betting seems to me like cheap opportunism that could have severe ramifications beyond just the betting industry."
He anticipated that the National Congress would approach the ban with a perspective oriented toward economic realities, rather than the narrative pushed by the President's electoral strategy. Maia asserted, "We have various legal arguments to contest this provisional measure and anticipate that Congress will not uphold a decision made on politically charged grounds."
Reflecting on the Attorney General's recent actions seeking significant compensation, he stated, "The request for compensation seems bizarre, especially so close to an election. It’s alarming to witness the Attorney General’s office pursuing claims when there appears to be no substantial damage incurred. The betting companies have consistently adhered to the law and regulations, and the figures presented seem outlandish."
Overall, Maia articulated a belief that the Brazilian betting sector, which he characterizes as legal and regulated, currently confronts significant uncertainties, potentially leading to harmful consequences not just for the gambling industry but for Brazil's perceived stability as a whole.
