Brazilians who want to create a sports betting, lottery and gaming market are locked in a debate over the right approach to take: state vs. federal licenses, Estadao reported March 26.
This debate is of vital importance considering the 203 million-person Brazilian market, much of which has internet access.
The legalization of fixed-odds betting in 2018 followed by the Federal Supreme Court (STF) decision “breaking the Union’s monopoly.” That allowed states to explore monopolies combined to create the present market, which is a fixed-odds lottery, where the bettor knows in advance how much he or she can win.
The decision, said Estadao, creates a three-pronged approach: 1) the need for the state and federal markets to coexist, 2) the territorial limits of state lotteries and 3) the exclusive right of the Union (i.e. federal government) to legislate the rules. This allows states to operate lotteries, but within federal regulations.
This enabled states to establish local rules, including different licensing fees and tax rates separate from what the federal licenses require. That led to the passage of Law 14790 last December, which sought to bring together the state and federal approaches under clear standards for states to operate, but within their boundaries and under federal regulations.
The Estadao column posits that legislation and court decisions point toward a system of federal cooperation with states able to regulate within their jurisdictions: “This framework ensures that while states can advance their own betting regulations, such efforts must not contravene principles and standards established by the federal government,” it concludes. But adds, “the possibility of Brazilian states establishing a totally independent licensing system, similar to the American model — where each state has full autonomy to define and apply its own regulations without subordination to federal guidelines — seems unfeasible.”
It concludes, “This delicate balance between state autonomy and federal guidelines reflects the complexity of the Brazilian betting market, requiring careful navigation on the part of operators, regulators and other stakeholders.”
As part of the development of this market, Vanessa Meireles Barreto was appointed to the position of general coordinator of sanctioning action of the Prizes and Betting Secretariat. This appointment was published March 22 in the Official Gazette of the Union, iGaming Brazil reported.
The shape and composition of the Secretariat is still in flux. In her new position, Meireles will be responsible for regulating sports betting and online gambling. Her immediate superior will be Undersecretary Raiana Falcão of the Subsecretariat for Sanctioning Action.
The new general coordinator is a veteran of management and strategic planning and has always worked in public administration as an advisor to ministers and secretaries.
