Brazil is swiftly advancing towards the legalisation of sports betting, with a crucial deadline fast approaching. Gambling operators aiming for a foothold in Brazil’s burgeoning sports betting scene have until the end of November to express their interest.
The Brazil Ministry of Finance has released comprehensive guidelines on sports betting, encompassing the licensing procedure, responsible gambling norms, and advertising protocols. Decree 1330, receiving the nod from President Luiz Inácio Lula da Silva and the lower parliament chamber, lays the groundwork for legalized sports betting in the country.
Significantly, Decree 1330 paves the way for international businesses to establish operations in Brazil. To do so, they must set up a subsidiary locally, along with a dedicated customer support center offering assistance in Portuguese round-the-clock, through toll-free electronic and telephonic modes.
While there’s no cap on the number of concessions up for grabs, aspirants should convey their intent to the Ministry of Finance by November 26. The proposal must outline their brand count and operational types.
For international corporations, an oath of commitment to found a firm within Brazil’s boundaries is mandatory.
Ensuring Sports Integrity Prospective licensees will be mandated to institute integrity protocols, sharing pivotal information with either local or global entities for oversight purposes. Additionally, they need to strategize against match-fixing, money laundering, terrorism financing, and curbing the spread of lethal weapons.
From a responsible gambling perspective, internal control measures should be in place, facilitating self-imposed player restrictions. Players should be empowered to define daily game time, financial losses, and self-imposed gambling breaks.
All promotional content must prominently display age restrictions, emphasizing the prohibition for those below 18. Such advertisements must abstain from misleading information regarding odds or glamorizing gambling.
For end-users, Decree 1330 ensures they have unhindered access to bet-related insights, encompassing guidance on bet placements and odds nuances. Cash transactions, card payments, bank slips, or third-party deposits won’t be entertained.
The Legalisation Journey Come September 2023, Brazil’s Chamber of Deputies gave the nod to the government’s gambling bill, regulating sports betting and online casinos alike. This was a defining moment in Brazil’s push to oversee online gambling.
The ratified bill will enforce an 18% gambling revenue tax, which, considering additional levies, effectively escalates to 31%-34%. An upfront license fee of R$30m (£4.89m/€5.69m/$6.10m) has been set.
Historically, the Federal Senate approved Federal Law No 13,756/18 in 2018, targeting fixed-odds sports betting regulations. Despite a four-year window for rule formulation, the outgoing president, Jair Bolsonaro, refrained from endorsing the new regulations.
However, with Bolsonaro’s electoral defeat and the industry-affable Lula’s accession, hopes soared. Lula, despite past reservations stemming from a 2007 gambling controversy, ratified the PM overseeing nationwide sports betting in July. For enduring legality, the PM demands Congressional approval within 120 days.
Tags: #BrazilBetting, #SportsGambling, #Licensing, #Decree1330, #Lula, #Regulations, #LegalisationJourney, #ResponsibleGambling.
