The 411 on Sportsbetting Regulation in Brazil
After prolonged deliberations, Sports betting is finally legal in Brazil after President Luiz Inácio Lula da Silva signed the Provisional Measure (PM) implementing the 2018 law.
The signing of Provisional Measure No 1,182 means that the 2018 Brazil sports betting regulations approved in Law No 13,756 by the Senate, have now been passed, though with several amendments.
The amendments include a slightly higher gross gambling revenue tax, more detailed marketing restrictions and an increased licence fee.
The Law
The Brazilian legislature, the National Congress, now has 120 days to approve the Provisional Measure (PM), which was unilaterally issued by the government.
The Congress may decide to block the measure however, as it stands today, the regulation is the approved legislation in play in the country.
The new law establishes Brazil’s Gambling Regulator, the National Secretariat for Games and Betting (SNJA).
The Ministry of Finance will be charged with regulating the National Secretariat for Games and Betting (SNJA) sector.
The Ministry is reportedly hiring for the new regulator and is expected to hire 70 total employees.
Once fully established, the SNJA is charged with establishing licence procedures and other pieces of technical regulation.
Amendments to 2018 law
The Provisional Measure (PM) includes several amendments from the 2018 law. One of such changes is the creation of SNJA, which was not included in the original regulations.
The tax on revenue increased from 16% to 18%. This was done in order to increase the amount of revenue flowing to the Ministry of Sports from 1% to 3%.
While the cost of a licence was not included in the PM, according to reports it is expected to increase to R$30m ($6.35m/€5.74m/£4.94m) from the previously established R$22.2m.
The PM includes a clause stating that foreign operators will be permitted to apply for a license.
Advertising Restrictions for Operators
The new law establishes far more detailed marketing and advertising restrictions compared to the 2018 law.
Operators will be required to promote responsible gambling messaging and are barred from acquiring the broadcast rights for sports.
The law establishes a self-regulatory framework in this area. Gambling businesses are expected to comply with the National Council for Advertising Self-Regulation (CONAR) standards.
History
Lawmakers in Brazil voted to approve both land-based and online sports betting in 2018.
When the law was passed, the government had two years to create and sign off the technical regulations. There was also the option of a further two-year extension.
After actioning the extension, the country’s Secretariat of Evaluation, Planning, Energy and Lottery (SECAP) published its rules and regulations for sports betting in May 2022.
This meant that president of Brazil at the time, Jair Bolsonaro, had a final deadline of 12 December 2022 to approve the final regulations. However, the president chose not to do so before the deadline.
However, after the 2022 election, a new president Luiz Lula da Silva emerged as the winner.
It was first reported that the government would be approving a PM to regulate sports betting in February.
In Top of Form
Jul 2023, the PM was approved and Sports betting finally became legal in Brazil.
Source: igamingbusiness.com
