Ex-VaidDeBob MD warns proposed Brazilian regulations will lead to a thriving black market

Thomas Carvalhaes says he does not support the current plans to regulate sports betting and online casino
The post Ex-VaidDeBob MD warns proposed Brazilian regulations will lead to a thriving black market first appeared on EGR Intel.  

Former VaiDeBob managing director Thomas Carvalhaes fears the current laws and ordinances for the impending Brazilian market launch could benefit the black market more than the regulated one.

Brazil’s Prize and Betting Secretariat (SPA) of the Ministry of Finance recently announced all licensed operators must include .bet in their URLs as the country enters the final stretches of regulating sports betting and online casino.

This is on the back of news that operators must have betting systems certified by an entity that has been recognised by the SPA. In addition, firms must also forward all data relating to bets, bettors, bettors’ portfolios and legal destinations to the regulator.

Official regulation has yet to be confirmed and the Ministry of Finance laid out its latest agenda last month with the aim of having rules finalised by the end of July.

In the upcoming tranches, the Ministry of Finance said the third phase will aim to create an attractive regulatory framework such as instructions on technical requirements for games and rules on supervising operators, which is due to be concluded by the end of June.

However, rules already outlined regarding a ban on sign-up bonuses and a 15% tax rate on player winnings above BRL2,824 (£435) have drawn the most ire from those in the industry.

Carvalhaes warned during last week’s NEXT Valleta event that all the proposed restrictions and limitations will lead to players turning to the black market.

He said: “My main concern is as it is, the Brazilian regulation; I cannot say I support it. There are so many restrictions, so many limitations.

“I feel this is going to open so much more room for a black market to thrive, rather than an extra healthy regulated market, which is where we should be headed.

“Considering again, the space and time we [have had to] consider that so many markets have been there [already]. But that is my concern.”

Using other markets as an example, Carvalhaes said Brazil and the rest of Latin America can learn a lot from Europe and the way countries have introduced self-regulation and trusted operators.

With further regulation arriving in Argentina, as well as Peru and Chile currently legalising their markets, Carvalhaes warned a lack of self-regulation and regulators not trusting operators will have a detrimental effect on these jurisdictions.

He added: “I think that they need to learn the terrible effects of the lack of self-regulation. If as an industry we don’t self-regulate; on what we advertise, how we advertise, how we take care of underage [bettors] and don’t take care of that, then the regulators will come and they will do it in the wrong way.

“They believe their operators. That’s the result of us as an industry first, not self-regulating, and secondly, not doing enough to make people aware of the fact that we’re contributing to an industry that is entertainment.

“This is meant to bring fun to people. We are planning, hiring people and investing. Whenever there’s a recommendation that’s affecting our interest, no one will care. That’s something that we need to learn from the European experience,” he added.

The post Ex-VaidDeBob MD warns proposed Brazilian regulations will lead to a thriving black market first appeared on EGR Intel.

 

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