Wagering on athletic events in Brazil is poised for regulation by the close of 2019. This development comes after the enactment of Law No. 13756/2018 in December 2018, which granted legal status to fixed-odds wagering, categorizing it as a form of lottery.
Marcelo Munhoz da Rocha, a legal advisor affiliated with BetConsult, recently engaged in a discussion with Gambling Insider, providing his perspective on the latest advancements in Brazilian legislation concerning sports betting. He elaborated that while wagering on sporting events is technically permissible, the precise details of its regulatory framework are still being finalized.
To guarantee the establishment of the most effective regulatory structure, the Brazilian government, through the Ministry of Economy, initiated a public feedback period in August. This consultation aimed to gather input from stakeholders within the gaming sector on crucial aspects such as taxation and licensing protocols.
Based on the responses received, a preliminary regulatory decree has been formulated. This decree outlines a market environment characterized by openness, where fixed-odds sports betting will function under a licensing system. It also delineates the specific legal prerequisites that prospective operators will be obligated to fulfill.
However, this is not the definitive statement on the subject. The Ministry of Economy has commenced a second phase of public consultation, setting a deadline of September 27th, with the objective of further refining the decree. This action signifies the government’s dedication to establishing appropriate regulations and fostering a sustainable and thriving sports betting market within Brazil.
The proposed law progressing through the Brazilian government aims to clarify aspects such as permit costs, the timeframe for their validity, and other particulars including levies and duties. Although no formal declaration has been made regarding the price of a permit, projections suggest it will be approximately R$3 million (roughly US$723,150). This fee is deemed acceptable for businesses aiming to establish a presence in the substantial Brazilian market, particularly as it establishes a transparent regulatory structure.
The shift towards legitimization marks a considerable change for Brazil. The nation possesses a sizable and dynamic unregulated sports wagering sector, and legalization seeks to bring these activities into the open, enhancing safety for participants and producing tax income. Notably, even media organizations previously against legalization have altered their stance, with advertisements for sports betting now prevalent.
While the schedule remains somewhat adaptable, it is projected that the regulatory structure will be finalized by late 2019, allowing for the issuance of licenses and the initiation of lawful sports betting enterprises.
Wagering on athletic events is poised to be legalized in Brazil, but the final hurdle remains distant. Although the government has granted approval, the specific details of implementation are still under development – such as determining licensed operators and establishing the regulatory framework. Additionally, there’s the matter of handling uncollected prizes, potentially necessitating a review of existing legislation.