Present at SBC Summit Rio 2024, the president of the Brazilian Institute of Responsible Gaming (IBJR), André Gelfi, gave an exclusive interview to Yogonet about his expectations regarding the regulatory process.
Among the points mentioned is the imminent publication of the 12 federal government ordinances that will establish the rules for online betting and gaming. Although the content and the exact dates on which they will be disclosed are not yet known, they are highly expected by the sector and are considered essential points in the new phase that the industry is going through in Brazil.
The ordinances were a much talked about topic at the first day’s conferences. The government has not yet disclosed their content, but what are your expectations regarding this announcement, which should be made shortly?
I think the matter is well advanced and we should have news in the short term. We expect that the ordinances will be related to the permitting process. So I think we are well on track with taxation, means of payment, certification of both platforms and products and payments, and we should have news in the short term.
We are also working on the rest of the ordinances and I imagine we will have news in the coming months. We are working with the scenario of having the market regulated and operating in Brazil by the end of the year.
Some points of the regulation continue to be criticized by some market representatives, such as the question of how the tax will be collected from bettors. In your opinion, is it a problem to keep this, and could it cause problems for the market?
You can’t escape the income tax because it’s in the law. It’s going to be necessary, it’s going to be collected in some way. The question is how. What is missing is more clarity on how, and I think that may be decisive for the success of the market.
If we have a reasonable format that reflects the dynamics and nature of online gambling and betting, I think we can come up with a competitive product, a value offer that makes sense and that, basically, allows us to channel the market to Brazil.
There is great apprehension. We are following and talking about this and I think we have a chance to get a thriving formal market in Brazil. We are going to see, we are going to wait. We are working to get it.
There has been a lot of concern in the press about the federal government’s possible tax war, because some states, such as Paraná and Rio de Janeiro, have established their own taxes and regulations. In your opinion, should the market be concerned, and is this something that could generate legal uncertainty?
I have a relatively optimistic view of this process. I understand that since the moment the law was published (which regulates the mechanics between the coexistence of state lotteries and the federal law), we will most likely have regional operators more focused on state licenses, providing a differentiated service, committed to the culture and dynamics of the market they are targeting.
And at the federal level, we will probably have bigger operators, with bigger ambitions and paying a more expensive federal license, operating in the Brazilian market. I think one thing complements the other. From the point of view of the value offer, the important thing is that the market is formalized.
