Brazil’s federal government has released a provisional notice containing rules for the upcoming regulation of fixed-odds sports betting. These rules, formulated by the Ministry of Finance, await the final approval from Brazil’s president.
Upon receiving the necessary approval, the proposals will be forwarded to the chief of staff, and relevant ministries will commence the process of implementing regulations and establishing systems for the market. The Ministries of Planning, Management, Health, Tourism, and Sports will play a crucial role in implementing the regulatory framework. Additionally, a new gaming secretariat, established by the Ministry of Finance, will oversee the approval of applications and monitor betting volumes and revenue.
Following the issuance of licenses, only authorized operators will be permitted to accept bets on official events, while unlicensed operators will be prohibited from any form of advertising. In terms of taxation, the proposed sports betting tax rate stands at 16%, as the Ministry of Sport has requested additional funds for sports. This tax will be levied on the revenue obtained, excluding the payout of prizes. Moreover, player prizes exceeding BRL 2112 (€395) would be subject to a 30% tax rate.
To address the issue of gambling-related harm, operators will be mandated to conduct awareness and prevention campaigns. Detailed advertising and marketing rules will be formulated in collaboration with the National Council for Advertising Self-Regulation (CONAR).
In the interim, operators affiliated with the recently established Brazilian Institute for Responsible Gaming (IBJR) have voluntarily agreed to abide by a code of self-regulation for advertising. This code, known as the Brazilian Code for Advertising Self-Regulation, marks the initial significant initiative by the new institute.
Key measures outlined in the code include prohibiting betting advertisements on Brazilian television between 6 am and 9 pm. This restriction aims to limit exposure to minors and promote responsible communication from the time the market is launched. Furthermore, gambling ads on television would also be forbidden during sporting events and one hour before and after their broadcast.