“Brazil needs to honor the rules it establishes”, says ABRAJOGO after MP bans betting

The Brazilian Association of International Gaming Operators and Providers (ABRAJOGO) considers the ban on fixed-odds betting to be a disruption of the regulatory framework established by the Brazilian State itself, and one that exacerbates legal uncertainty for an economic activity that operated under authorization, oversight, and rules defined by the Federal Government. Brazil decided to regulate betting by establishing standards, granting authorizations, and charging licensing fees for the activity’s operation. Following this milestone, companies invested in the country, hired professionals, developed systems, entered into contracts, and structured their operations to meet the requirements set by the State. Now, that same activity has been abruptly banned—overnight and without any safeguards for investors who relied on the rules established by the public authorities themselves. Therefore, this move undermines one of the essential pillars of any business environment: the confidence that decisions, authorizations, and commitments made by the State will be honored. When companies invest based on official rules and subsequently see those conditions abruptly changed, a sense of uncertainty arises that extends beyond the confines of the betting industry. The issue is not limited to a single sector, ABRAJOGO points out. The issue, therefore, does not concern only a specific sector. It affects the credibility of the Brazilian regulatory environment and the confidence of any economic agent needing to assess whether authorizations, contracts, and investments made in the country will remain stable over time. The ban also fails to eliminate existing demand. By driving the activity out of the regulated environment, it increases consumer exposure to underground platforms that are not subject to the same obligations regarding identification, monitoring, self-exclusion, responsible gaming, and consumer protection imposed on authorized companies. In the regulated environment, the State has at its disposal instruments for the oversight, control, and tracking of operations. The weakening of this model reduces the capacity to monitor the activity and expands the space for operators acting outside Brazilian regulations. Consequences impact jobs, investments, and various sectors. The consequences also extend to jobs, suppliers, contracts, investments, sponsorships, and various sectors that have become part of the economic chain established following regulation, as well as to tax revenue and the allocations earmarked for areas of public interest. Decisions of this magnitude require institutional dialogue, evidence, technical analysis, and, above all, respect for legal certainty. According to the organization, maintaining confidence in the rules established by the State itself is an essential condition for any economic environment that is stable, responsible, and capable of attracting investment. ABRAJOGO will remain open to dialogue with public authorities, the National Congress, and various sectors of society, and will take appropriate legal measures to ensure compliance with the law, respect for granted authorizations, and the preservation of legal certainty. Finally, the organization warns that “Brazil needs to honor the rules it establishes.” O post “Brazil needs to honor the rules it establishes”, says ABRAJOGO after MP bans betting apareceu primeiro em iGaming Brazil.