The Brazilian Sports Betting Licence application deadline is late November.
Brazil’s Ministry of Finance has released the conditions general for sports betting in Brazil, which includes the license process, responsible gambling and advertising. The Decree 1330 specifies also the rights and obligations for bettors. After both President Luiz inacio Lula Da Silva and the Lower House of Parliament gave their consent to legalised sport betting, the guidelines were published.
The Decree 1330 states that foreign companies can operate in Brazil but must first establish a Brazilian subsidiary. The foreign business must create an in-country customer service center that provides free assistance to Brazilians 24 hours per day and seven days a weeks via electronic or telephone channels.
No limit will be placed on the number of concessions. Businessmen who wish to obtain an authorisation are required to submit a preliminary statement of interest by the 26th November. The number of brands and types of business they plan to run must be indicated.
In their application, foreign companies must swear to set up a Brazilian company.
Sports Integrity is the focus
The licensees must implement integrity measures and provide information to the national or international monitoring bodies. The licensees must implement policies that prevent match fixing, money laundering and terrorism funding, as well as the proliferation of weapon of mass destruction.
Operators must be able to self-exclude and have systems for internal control. The betting industry must allow players to limit their daily playing time and losses, as well as pause times.
Advertisements must contain age restrictions warnings that show gambling for anyone under the age of 18 is illegal. Advertisements must not make deceptive statements about odds, or portray gambling as attractive.
Decret 1330 gives players the right to information on bets. These information must include information on how to bet and odds. All transactions involving cash, credit card, bank slips, and third party deposits are forbidden.
The long road to legalisation
The Brazilian Chamber of Deputies will approve the gambling bill of the Government in September 2023. This law regulates online casinos and sports betting. This bill was one of the last hurdles to be overcome in order to regulate gambling online in Brazil.
According to the September bill, an 18% gambling tax will be applied. Commentators noted that this tax rises from 18% to between 31% and 34 % once the additional contributions have been taken into account. A R$30m (PS4.89m/EUR5.69m/$6.10m) licence fee has already been announced.
The Federal Senate adopted Federal Law No. 13,756/18 in 2018, which sought to regulate fixed odds sports betting.
After the passing of the legislation, the government has four years to create the necessary regulations. Jair Bolsonaro failed to approve the rules just before the finish line.
After Bolsonaro lost the elections, Lula was elected. He is more pro-industry. Lula was not as supportive of the industry as he used to be after he had been burned by a gambling scandal in 2007.
Many expected that the new leader would regulate sports betting to fund social projects. In July, his government issued the Prime Minister who regulated all sports betting in the country. For a PM’s status to be permanent, the Congress must approve it within 120 days.
