The Long Wait: Navigating the Uncertain Waters of Sports Betting Regulation in Brazil
Wagering on athletic events in Brazil was projected to be governed by the final quarter of 2019, but the procedure has been more prolonged than foreseen.
Marcelo Munhoz da Rocha, a legal advisor at BetConsult, conversed with Gambling Insider and furnished an update on the circumstances. Although fixed-odds sports wagering has been permissible in Brazil since December 2018 under Law No. 13,756/2018, which categorized it as a lottery, it still requires proper regulation.
To establish the most effective regulatory structure, the national government, through the Ministry of Finance, initiated a public dialogue in August 2019 to collect feedback from the sector, particularly on taxation and licensing frameworks. This resulted in the issuance of a draft regulatory decree, suggesting an open-market system with authorization permits for operators fulfilling specific criteria.
Nevertheless, this decree was not definitive and is anticipated to be modified. A supplementary decree is expected, and the Ministry of Finance commenced a fresh round of public consultation that concluded on September 27th. The aspiration is that these actions will ultimately yield clarity and a robust framework for lawful sports wagering in Brazil.
Brazils recently enacted laws are poised to establish a well-defined structure for wagering on sporting events, encompassing specifics such as permit costs, regulations, and other significant factors like levies and charges.
Although the precise expense of a permit has not been formally verified, it is projected to be approximately R$3 million (equivalent to $723,150 USD). This sum is liable to alteration pending subsequent regulatory adjustments.
Numerous stakeholders perceive the acquisition of a permit to function legitimately within Brazils regulated sports wagering sector as a lucrative prospect for both operators and those providing capital.
The general sentiment towards sports betting in Brazil has undergone a transformation. The illicit market was already substantial, but legitimization and regulation seek to furnish legal assurance to an activity already embraced by a considerable number of Brazilians. This action will also empower the government to gather revenue from this market.
Even media entities that previously opposed legalization have modified their stance, with advertisements for sports betting now prevalent on television and other media platforms.
The regulatory structure is anticipated to reach completion by the close of 2019, clearing the path for the commencement of licensing procedures.
Whats the delay with launching sports wagering in Brazil?
Although the legislation received approval, they’re still ironing out the details of its implementation – the regulations and who receives authorization to provide it.
Additionally, Congress might need to modify the law they enacted in 2018 (Law No. 13,756, for those curious). There’s an issue with uncollected winnings that requires resolution.
