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Bolsonaro Fails to Sign Brazil’s Regulated Sports Betting Bill
By Jeff Osienya Dec 15, 2022 LegalityBolsonaro, Brazil’s outgoing president, let the sports betting legalization deadline (December 12th) pass without signing the activity’s bill into law. The Latin American nation is now back to square one with its sports betting endeavors.The deadline for creating a regulatory framework that would have seen sports betting officially launched in Brazil lapsed on December 12th, 2022. Unfortunately for sports wagering fans in the South American nation, outgoing Brazillian President Jair Bolsonaro failed to rubberstamp the draft sports betting regulation before the four years agreed upon in 2018 were over. As a result, sports betting in the country has now been left in legal limbo, and the Brazilian sports gambling market will continue being at the mercy of operators licensed in other jurisdictions.
Bolsonaro, who will be handing over to the incoming President-elect Luiz Inácio Lula da Silva, had repeatedly expressed his unwillingness to support a regulated sports betting environment. He remained adamant despite evidence that it could bring in billions of dollars in revenue. For example, the proposed $4.2 million license fee for operators willing to enter the sports betting industry in Brazil would have brought approximately $25 million off the bat.
Thus, the president’s refusal to sign the new rules is a significant drawback for a process that legislators have worked on for the past four years.
A Long Way to Go, Since 2018
In 2018, then-President Michel Temer signed a decree to establish a framework that would have had sports betting regulations published within two years – with a possible extension of two more years.
However, the process dragged on during Bolsonaro’s term, guaranteeing that offshore bookmakers would continue to profit from an enthusiastic market. As of 2022, Brazil’s offshore sports betting market is estimated to be worth around US$1.32 billion. Additionally, the figure may skyrocket to a whopping €160 billion by the end of the World Cup season. Whatever the case, Brazil’s government won’t be benefiting from the lucrative industry any time soon.
Sports law professor, lawyer, and honorary President of Brazil’s Ibero-American Institute of Sports Law Luiz Marcondes commented on the legal situation, saying,
Quote“Today, international sports betting operators create products related to Brazilian sports and for local consumers to place their bets, but for all intents and purposes, it is as if they were doing a legal business or contracting with a foreign company. Therefore, the applicable legislation is the foreign one, and if there is no regulation, nothing changes.”
Marcondes added that the political environment, which has been unclear these past months, was likely the main reason why the sports betting agenda did not go through in time. However, he also noted that since regulating sports betting is a venture that could generate billions for the government, chances are high for its reintroduction on the agenda pretty soon. Further, the current legal uncertainty, as is termed by analysts, is no joyride for bettors as there is no legal recourse in case of issues with an offshore operator.
Betsson Partner and Director in the Brazil Branch Andre Gelfi also expounded on the legal situation in the country. He stated that since there is no decree, the industry will operate in a confused manner where judicial decisions differ, leading to a ‘patchwork of rules’ that don’t necessarily apply to all. He said in part:
Quote“Nobody is going against the regulation. Part of the government wants it, the operators want it, and soccer also wants this security. Today we are big advertisers, and everyone is bringing this issue to light because they want legal certainty for the segment.”
Similarly, Alexandre Fonseca, Brazil’s Country Manager for Betano, added:
Quote“The absence of regulation can lead to losses for all those involved in the segment. The government does not receive taxes, customers do not have a clear reference about reliable bookmakers, and operators do not have the legal security needed to scale their investment in national territory.”
Potential Sports Betting Opposition in the New Government
Brazilians are so keen on betting that the presidential race was among the wagering markets that bettors gambled on in October and November. Therefore, a postponement of establishing a regulated betting market only serves to keep offshore bookmakers’ pockets full while denying the citizens the benefits that steady tax revenue could bring on board.
Meanwhile, there are potential obstacles that the regulated sports betting agenda could face with the upcoming change of government. The Federal Senate’s composition after the just-concluded elections is 14 seats held by the Liberal Party (Bolsorano’s party), 11 by the PSD Party, and 9 by the Worker’s Party (Da Silva’s party).
Consequently, as Brazillian lawmakers get ready to go back to the drawing board when the new president takes office, there may be some immense opposition from the Liberal Party. The sports betting legalization process may further be slowed down as a result, as the new Senate is supposed to vote on Bill 442/1991.
Until today, the president-elect has not commented on his stance regarding sports betting. So, for now, Brazilian bettors will just have to wait and see how things pan as it’s hard to tell how the new government will handle things.
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