Anna Shahbazyan, Regional Director of Latin America for BetConstruct, has called on Brazil’s government to apply low taxation – or even first-year non taxation – to maximize the investment of international companies within the country’s new regulatory framework for sports betting.
Shahbazyan gave a speech as part of a public hearing held in Brazil’s Chamber of Deputies, which debated the introduction of regulated online gambling in the country.
“The government should take into consideration that international companies are making a big investment,” she said. “For sure, the taxation should be lower and there should not be a monopoly in the country, but instead equal rights for the international companies to compete, grow and establish their business inside the country while getting a return on their investment.”
The main argument against allowing state monopolies to emerge is that it doesn’t allow for fair competition, while applying a restriction on the number of new licences issued can be similarly prohibitive in that just a few operators can quickly eat up the market share.
Shahbazyan also said that creating the right climate for international companies to enter will bring about significant economic growth, create lots of job opportunities for locals, and make it possible for all those living in the country to enjoy “happier, healthier and more prosperous” lives.
Meanwhile, she suggested that the regulator set limits in terms of sports betting margins to create healthy competition between operators. She explained that those small companies who start with unrealistically high odds might get a quick return on their investment, but will create an “artificial level of competition” which, in the long term, will prove detrimental to the market.
The third key theme of the speech was black market control, with Shahbazyan citing “the disappointment and unsecured feelings that operators can feel” in response to fixed matches.
“Having a strong and deep control over fixed matches, driven by a special governmental department will help all the international operators to feel secure and safe,” she said.
“If the black market continues to present a real challenge to legal and regulated operators, then profits will not be growing. We need to have a trust and a level of protection, otherwise it will be meaningless to make such a big investment.”
To watch the full interview, click here.