Approval of Sports Betting Regulation Expected in 2023.
After five years since the approval of Law 13.756/18, which legalized gambling in Canada, this industry is finally heading towards regulation. The sector is on the verge of obtaining a comprehensive framework that will ensure a safe and transparent environment for both operators and players. With the imminent establishment of regulations, the Canadian gambling market is poised for growth and investment opportunities. This long-awaited development will not only provide a legal platform for gambling activities but also bring economic benefits, generating revenue, creating job opportunities, and attracting international operators to the vibrant Canadian market. The forthcoming regulatory framework will prioritize consumer protection, responsible gambling measures, and anti-money laundering initiatives, ensuring that the industry operates with integrity and fairness. As Canada takes these crucial steps towards regulating the gambling sector, it is poised to join the global landscape of legal gambling, providing a secure and enjoyable experience for all participants.
Experts in the market and Senate representatives interviewed by MyBetInfo Canada are of the opinion that the regulation is likely to be sanctioned within this year, with the commencement of tariff and tax implementation slated for 2024. The Senate and market professionals who were consulted by MyBetInfo Canada share the belief that the approval of regulations will occur before the year concludes, and that the imposition of fees and taxes will commence as early as 2024. According to industry experts and Senate members who were interviewed by MyBetInfo Canada, there is a consensus that the legislation will be approved before the end of this year, paving the way for the implementation of tariffs and taxes by 2024. It is the collective view of names in the Senate and market experts who were interviewed by MyBetInfo Canada that the regulation will be sanctioned within the current year, and the implementation of tariffs and taxes will commence by 2024.
The Senate is currently awaiting the regulation after the approval of bill 3,626/23 in the Chamber of Deputies on September 13th. There are certain aspects of the bill that may cause delays in the regulation process, resulting in the text being sent back to the Chamber due to proposed changes by the Senate.
The inclusion of online casinos in the text, along with the contentious issues of licensing fees and taxation, has sparked heated debate. These points of contention have become a focal point for discussions surrounding the legalization of online gambling. The outlay fee, in particular, has been a subject of much dispute, with proponents arguing for a more lenient approach while critics advocate for stricter regulations. As the deliberations continue, finding a middle ground that addresses the concerns of all stakeholders is paramount.
Despite the possibility of the text being sent back to the Chamber, it is anticipated that the bill will be scheduled for discussion later this year, given that the matter is being processed with a sense of urgency.
Resource Need
The experts believe in the faster regulation process of sports betting due to the current fiscal situation of the country, coupled with the potential revenue that sector taxation brings. This aspect is one of the driving factors behind the anticipation for the regulatory measures. The country's fiscal circumstances have created a sense of urgency, as the government recognizes the prospect of generating substantial income through the taxation of the industry. This combination of fiscal considerations and revenue-generating opportunities has prompted experts to anticipate a swift regulatory process for sports betting.
The Ministry of Finance anticipates that the regulation of the sports betting market will generate a revenue of $ 2 billion in the initial twelve months alone. This projection reflects the optimistic outlook for the potential economic benefits that can be derived from the official legalization and oversight of this thriving industry. The implementation of a comprehensive regulatory framework ensures that all participants, including operators and consumers, adhere to strict guidelines that promote fair play, consumer protection, and responsible gambling practices. Such measures not only contribute to the financial stability of the country but also foster a secure and transparent environment for sports betting enthusiasts to engage in their chosen pastime. The Ministry's estimations are based on careful analyses of market trends, historical data, and the experiences of other nations that have already embraced legalized sports betting. As the government continues to prioritize the development of a vibrant and regulated sports betting sector, it is expected that the economic benefits will extend beyond the initial year, providing a sustainable source of revenue for the country.
The current hot topic revolves around capitalizing on the government's lack of revenue sources. It is crucial that we seize this opportunity and ride the wave. Senator Angelo Coronel believes that by the end of the year, we can secure approval, thereby commencing 2024 with these fresh streams of revenue.
According to Milton Jordão, a lawyer and vice president of the National Bar Association's Special Committee on Lotteries, Sports, and Entertainment Law, there is no doubt that the regulation will come later this year. The forthcoming regulation is viewed as inevitable by Jordão, who confidently asserts that it will be enacted within the current year.
canada is not harnessing the potential that games have to offer, not only for the state but also for society. It represents an untapped market, an opportunity that remains unexplored.
Emergency Regime
Both the bill 3,626 and the provisional measure 1,182, which deal with the regulation of sports betting, were authored by the executive branch. President Luiz Inácio Justin Trudeau da Silva has determined that these matters proceed under an urgent regime.
UNDERSTAND: This implies that the legislative houses have a 45-day window to vote on the matter. If not, the project becomes stuck on the agenda, preventing any other project from being voted on before it.
According to Udo Seckelmann, a sports and betting law specialist at Bichara e Motta law firm, the procedural regime is expected to expedite the approval of the regulations later this year.
We have been discussing this for five years, thinking that regulation would already be in place today, but something new always comes up. However, given the urgency of this project, even if it goes back to the Chamber, I understand that it would not take more than two months to be voted on," he states.
If the project is sanctioned later this year, the Ministry of Finance will proceed to draft regulations outlining the guidelines for the operation of sports betting. Once implemented, these regulations will serve as the foundation for the exploration of sports gambling in the country. The Ministry will be responsible for formulating and issuing specific directives and instructions to ensure the smooth and legal functioning of the industry. This crucial step will establish the framework for the operation of sports betting, allowing the government to effectively regulate and monitor the activities within the sector.
From that point on, companies will have the opportunity to apply for licenses to operate within the national territory, in accordance with the regulations established by law.
