After further delays in the framework, the Brazilian Institute of Responsible Gaming has lambasted “uncertainty” of the regulatory framework for sports betting.
IBJR expressed its concern about the current state of regulations in the country, stating that “sudden changes of course” and further delays are creating uncertainty after waiting over four years for regulations to become set in stone.
In a statement, the IBJR said: “The news that the Provisional Measure announced for end of April will be converted into an Urgent Bill of Law marked another sudden change of direction in relation to plan that Government Federal had communicated the market. This caused new delays and insecurity among operators, and members of IBJR.
“Our optimism about the potential of the Brazilian Market has been tested over the past four years, during which we waited for the regulation of this sector and the issuing of operating licenses. This was after the approval of Law No. 13,756 by Congress National and its sanctioning by the President.”
IBJR was concerned about the high tax rates in Brazil. SBC Noticias estimated that will be 28%. The collective, which was formed to prepare for the imminent introduction of sports betting regulations, also complained that the proposed R$30m license fee would be among the highest in the world.
IBJR stated that these two issues could lead players to the illegal market because offshore operators offer a greater variety of products, such as online casinos, and do not charge taxes.
The collective responded by issuing a number of requests, as the regulatory process nears its conclusion. The collective has made several demands, including the continuation of the tax rates that were proposed in the 2018 sports betting legislation. They also want the individual income tax adjusted to reflect the low margins of sports betting compared to lottery games.
IBJR concluded its letter by saying: “We insist on regulation as the best answer to the social and economic problems of this industry. Regulation must, however, be consistent and in line with successful, sustainable international markets which have operated for decades.
“As the regulation process enters its last stages, we’re still not convinced the decision-makers will understand that legitimate institution investors won’t seek licenses in Brazil unless there is a guarantee of fair and sustainable regulation that allows fair competition between operators.
Brazil is not a market that should be pursued at all costs.