As part of its creation of regulations for sports betting, the government of Brazil intends to rein in the foreign sports betting sites that are operating in the country, Yogonet reported June 30.
The government had previously announced it was sending a provisional measure to Congress to create the National Secretariat of Games and Lotteries.
Recently José Manssur, special advisor to the Brazilian Ministry of Finance met with the CPI-FUTE, the Congressional Commission that investigates claims of sports betting match-fixing. On the agenda was the regulation and taxation of sportsbooks.
The group also discussed the provisional measure and how the Secretariat will administer it if it is adopted by Congress. Besides overseeing fixed-odds betting, the Secretariat will be in charge of regulating the government-operated games and lotteries, the Chamber of Deputies News Agency reported.
Manssur later told a public hearing of lawmakers: ‘”We are going to send the proposals to the CPI so that it can contribute from the conclusions that can be drawn here.”
He said he expected that the Executive would, through ordinances, create rules for fighting financial fraud that involves off-shore sportsbook sites.
Manssur said the government’s position is that companies that take bets from Brazilians should be headquartered in the country, have a minimum share capital and be required to employ a minimum number of Brazilian residents.
Manssur, asked about whether the government will work to suppress match fixing, said it will use monitoring systems that enable real-time control of the volume of accredited operators.
Large bets (more than $200,000) will catch the attention of the Ministry of Finance, said Manssur, “and, based on the monitoring of the standard behavior of athletes, we will be able to determine that companies remove that game from the betting card.”
Taxes collected from betting will be earmarked for education, the National Public Safety Fund, to clubs for transferring brands to wagering sites, social security and the Ministry of Sports.
The Ministry has warned previously that the nation is losing more than $2 million every day that sports betting remains unregulated.
The hearing also covered responsible gaming and compulsive gambling and the idea that the government shouldn’t encourage the idea that gamblers can change their economic status through gambling.
