By Leonardo Neri Candido de Azevedo
Initially, the Ministry of Economy showed interest in granting unlimited licenses to entrepreneurs who wish to operate in the sports betting business in Brazil, as legalized by the enactment of Law 13,756/2018, sanctioned at the end of last year.
Such authorization would bring a model very similar to what occurs in European countries such as England, Belgium, Estonia and Costa Rica.
At the public hearing held on May 28 at the Ministry of Sports, it was also agreed that the draft regulation of the standard should be available within 120 days, which would make it possible to start operations in Brazil at the beginning of 2020.
The proposed model was widely celebrated by investors, jurists and specialists in the segment, given that the scenario would also include the possibility of granting licenses in a limited and more expensive form, as occurs in Germany, as well as through the monopoly system, in force in countries such as Sweden, the Philippines and Canada.
These models present points that could conflict with the current context of the national market, which currently operates through companies headquartered in physical havens, such as the Republic of Malta. In this sense, the model of limited concession of players could create an obstacle to the growth of the business on a large scale, since it would foster fierce competition with the current model, whose predominant performance is by international entrepreneurs, due to the more attractive financial conditions for the consumer.
The monopoly system is the least attractive from the market's point of view, given that Brazil currently operates under a similar model, with Caixa Econômica Federal exclusively operating through sports lotteries.
Foreign experience suggests that the effectiveness of the regime to be established will depend, in addition to the quality of the regulation that will accompany it, on the attractiveness of the local economy and also on the tax regime, which must be sufficiently efficient to guarantee the highest possible revenue and, even so, make it attractive to agents who will come to Brazil.
Therefore, for the country to present a better competitive capacity to reproduce the economic growth of the business and, consequently, raise state revenue, the model of authorization of unlimited licenses, with tax benefits, would be the most appropriate for the development of national startups, as well as for the migration of the global market to our territory, which would result in potential growth of the enormous peripheral market that leverages sports entertainment.