During the SiGMA Americas BIS Summit in Brazil last week, Founder and CEO of the SiGMA Group welcomed José Francisco Mannsur, Advisor to Brazil’s Minister of Finance. Mannsur attended the Summit as a VIP speaker on a panel made up of a number of Brazil’s thought leaders in the industry.
In a private discussion with Pulis, Manssur discussed the future of the iGaming sector in Brazil and the urgent need for regulation in the jurisdiction. Manssur and Pulis also spoke about the potential of the Brazilian gambling sector and the challenges that the Government and Regulators are facing. Pulis described the nature of the meeting as very ‘insightful and thought-provoking’.
Pulis spoke with SiGMA News:
As we embark on our expansion into Brazil, I firmly believe in having a grand vision while taking measured steps forward. Seeking mentorship and guidance, exchanging experiences with such an influential thought leader as Francisco Manssur was one of the highlights of the SiGMA Summit. Francisco has been pivotal in shaping the industry in the Brazilian jurisdiction. The regulation of the iGaming sector in Brazil will have an impact not only on the LatAm region but on a global scale.
The iGaming sector is ready for Brazil. SiGMA Group has been exploring this territory for the last ten years and I am really thrilled to see that the Government has confirmed the creation of a Gaming and Lotteries Secretariat to regulate sports betting too. I am convinced that the gaming market in Brazil and is poised to explode. Continuous learning, evolving our mindset, and embracing new approaches are essential.”
Eman Pulis, Founder and CEO – SiGMA Group
In a significant and eagerly anticipated development, the Parliamentary Commission investigating match-fixing in Brazil hosted a get-together for government officials to discuss the regulation and taxation structure of sports betting. Advisor to the Minister of Finance, Francisco Manssur confirmed that a bill would be presented in the coming days, accompanied by the establishment of the National Secretariat for Gaming and Lotteries.
Manssur highlights Brazil’s economic losses from the absence of regulation
Manssur highlighted the staggering economic losses resulting from the absence of regulation. With daily revenue losses estimated at around US $2.1 million and a cumulative volume of up to US $1.7 billion in the past four years, the need for regulation in the industry becomes increasingly vital.
Today, we fail to raise US$ 2.1 million a day due to the lack of regulation, and in the last four years, this volume has been between US$ 1.25 and 1.7 billion.”
José Francisco Manssur, Advisor to the Minister of Finance – Brazil
During a public hearing held by Comissão Parlamentar de Inquérito, government representatives also discussed the need for regulation and taxation of sports betting in Brazil. Concerns were raised that the country has missed out on collecting an estimated BR $ 6 to 8 billion (US $ 1.25 to 1.7 billion) over the past four years due to the lack of regulation. José Francisco Manssur confirmed that a Provisional Measure and a Bill will be introduced soon. Manssur emphasized the urgency of regulation. The focus initially will be on fixed odds betting, with plans to address legislation for other forms of gambling in the future.
Safeguarding the rights of gamblers
Furthermore approval of the bill would signify both the protection of consumer rights and the collection of taxes, presenting a positive outcome for the government. According to Wadih Nemer Damous Filho, the National Consumer Secretary, numerous complaints have been received regarding the non-payment of prizes to bettors. He highlighted that certain events may constitute criminal offences, such as manipulation, which require a collaborative effort from the Executive, Legislative and Judiciary branches, as well as law enforcement agencies.
Damous Filho pointed out the challenges in safeguarding the rights of gamblers due to the absence of legalized gambling in Brazil. He emphasized the urgent need for regulations on sports betting in order to ensure consumer protection.
He referred to Bill 442/91, which addresses different forms of gambling and noted that it is yet to be approved.