Brazilian Sports Betting: An Update on Regulation and Licensing

Wagering on athletic events in Brazil is anticipated to be governed by the final quarter of 2019.

A Gambling Insider representative conversed with Marcelo Munhoz da Rocha, a legal advisor at BetConsult, to obtain the most recent updates on the progression of Brazilian sports wagering laws.

Da Rocha detailed the present condition of sports betting legislation in Brazil. In December 2018, Brazil ratified Law No. 13,756/2018, which decriminalized fixed-odds sports wagering operations. This updated law acknowledges the practice as lawful and categorizes it as a lottery-style game.

Although now lawful, fixed-odds sports betting is not yet overseen. To guarantee the most effective regulatory structure, the national government, through the Ministry of Finance, initiated a public dialogue in August. The objective was to collect feedback from the gaming sector, concentrating on taxation and permit structures.

Based on the responses obtained, a draft regulatory order has been released. It suggests that fixed-odds sports betting function within an open market setting, utilizing an authorization licensing system. Consequently, interested businesses or partnerships would need to fulfill specific legal benchmarks to acquire a license.

Nevertheless, the order is not without imperfections and is not the definitive edition. A supplemental order is projected to be disseminated, and for that purpose, the Ministry of Finance has commenced a fresh cycle of public discourse, concluding on September 27th.

The recently released ordinance is anticipated to offer transparency regarding permit charges, durations of validity, and additional particulars like levies and other accumulations.

**What is the projected cost of the permit charge?**

Although an official declaration hasn’t been made as this wasn’t the primary emphasis of the initial regulatory ordinance, the permit charge is projected to be approximately R$3 million (US$723,150). This figure is still awaiting verification in subsequent regulatory ordinances.

**Will this present a hurdle for providers, or is it attainable?**

Given that this will function as a licensing framework, remitting R$3 million to conduct business legitimately within a regulated setting in Brazil will likely be an advantageous arrangement for providers and investment entities.

**What shifts have occurred in the public’s understanding of sports wagering?**

The illicit or unregulated sector for sports wagering is already substantial and boasts a considerable user base in Brazil. Legalization and regulation will bring to the forefront an activity already ingrained in the routines of Brazilian sports enthusiasts, transforming it into a taxable pursuit.

Influential media organizations that previously opposed legalization have now modified their stance on the matter. Currently, it’s commonplace to encounter promotions connected to sports wagering on television and through other media channels.

**When can sports wagering activities potentially commence in Brazil?**

Projections suggest that the regulatory process should conclude by the final quarter of 2019, with the licensing procedure initiating shortly thereafter.

Wagering on athletic events is poised to be legalized in Brazil, though some obstacles remain. Legislation has been passed, but the administration is still finalizing particulars such as licensing for operators and the framework for oversight. Additionally, existing statutes from 2018 may require adjustments to address matters like the disposition of uncollected prizes.