Brazil Gambling Industry Pushing Back Against Further Ad Restrictions
After the Brazil Senate approved new gambling ad restrictions last week, the industry is hoping to push back against the measures, believing they could lead to rises in black market activity.
The Senate approved Bill 2,985/2023 in late May, with the proposal to introduce bans on betting ads during live sporting broadcasts and time-based restrictions set to go to the Chamber of Deputies.
Lawyer Luiz Felipe Maia, founding partner of Maia Yoshiyasu Advogados, feels current ad restrictions are enough if they’re enforced, telling iGB: “I think the current regulation is sufficient in protecting people, and they are coherent with this stage of the market, because Brazil has just become regulated.”
Betsul CEO Fernando Garita believes Brazil should look at other markets, such as Italy, where ad bans have aided the black market, saying: “Blanket bans would significantly reduce the visibility of regulated operators, while illegal ones would continue to thrive.”
Paraguay Regulator Announces Record Monthly Income in May
Conajzar, the gambling regulator in Paraguay, announced it collected PYG18.7 billion ($2.3 million) from betting taxes in May, a monthly record.
According to local news outlet La Nación, Conajzar President Carlos Liseras said the figure was achieved through small interventions from the regulator.
Liseras said that at the start of the current government in 2023, monthly collections from gambling varied between PYG11 billion and PYG12 billion.
Paraguay’s gambling sector is undergoing major changes, enacting landmark regulation in May to eliminate its monopoly, with Liseras predicting this could more than double current state contributions from betting.
Five Operator Licenses Reinstated Following SPA Suspensions
Brazil’s Secretariat of Prizes and Bets (SPA) has reinstated five licenses of gambling operators that it suspended last Friday for failing to provide certain documentation.
The SPA suspended the licenses of seven operators, explaining these companies had failed to provide the necessary security assessment reports for their betting systems mandated in the regulation.
However, Pixbet’s authorization was reinstated thanks to a federal court decision, while EA Entretenimento e Esportes, Bet.Bet Soluções Tecnológicas SA, Logame do Brasil Ltda and Sortenabet Gaming Brasil SA all sent the relevant documents and can continue operations.
Brazil Trade Bodies Join Forces Against Tax Raise Proposals
Six major Brazilian gambling trade groups have jointly criticized rumored government plans to increase industry taxes.
On May 22, the Brazilian government called for the rate of financial transactions tax (IOF) to be raised from 0.38 percent to 3.5 percent, though the move has since faced pressure from Congress.
As a result, the government is now reportedly planning to revoke the tax rise, with National Bank for Economic and Social Development President Aloizio Mercadante suggesting hiking taxes on the gambling sector to make up for the revenue lost by eliminating the IOF increase.
In a joint statement, trade bodies such as the Brazilian Institute of Responsible Gaming and National Association of Games and Lotteries warned raising gambling taxes could risk harming the viability of regulated operators, thus boosting the illegal market.
Betano Regulatory Chief Warns Illegal Market Still Key Concern
Despite general optimism since Brazil’s regulated online betting launched earlier this year, Kaizen Gaming’s Chief Regulatory Affairs Officer Ioannis Spanoudakis says the illegal market remains a major concern.
Kaizen Gaming-owned Betano was the first operator to apply for a license in Brazil and is now ranked as the market leader by H2 Gambling Capital.
But despite Betano’s early success, Spanoudakis tells iGB the “very sizable black market” continues to be a problem for the company and its licensed peers.
“Online gaming is a large and rapidly growing industry that must operate responsibly,” Spanoudakis reveals. “A key part of that is eliminating the black market, and players migrating to the legal ecosystem.”
