Companies wanting to operate sports betting in Brazil have until the end of November to show their interest in obtaining a license. The Ministry of Finance in Brazil has outlined the rules for sports betting, covering the licensing process, responsible gaming, and advertising. The guidelines were released after approval from President Luiz Inácio Lula da Silva and the lower house of parliament.
Foreign companies can operate in Brazil but need to set up a local subsidiary and provide 24/7 customer service in Portuguese through free electronic and phone channels. There’s no limit to the number of licenses available. Those interested must submit an initial expression of interest by November 26, specifying the number of brands and types of operations.
Licensees must implement integrity measures and share information for monitoring with national or international bodies. They also need policies to prevent match-fixing, money laundering, terrorism financing, and the spread of weapons of mass destruction.
Operators must have internal controls for responsible gambling, allowing self-exclusion and letting bettors set daily limits. Advertisements must carry age restriction warnings against gambling for those under 18 and should not make deceptive claims about odds or present gambling as socially attractive.
In September 2023, Brazil’s Chamber of Deputies approved a bill regulating sports betting and online casinos. The bill includes an 18% gambling tax on revenue, rising to 31%-34% with additional contributions. A £4.89m/€5.69m/$6.10m license fee has been announced.
In 2018, the Federal Senate passed Federal Law No 13,756/18 to regulate fixed-odds sports betting. The government had four years to develop regulations, but the outgoing president, Jair Bolsonaro, did not sign off on the rules. Lula, the new president, regulated sports betting in July to fund social projects. However, Congress must approve it within 120 days for permanence.
In conclusion, Brazil is on the verge of a significant development in the realm of sports betting, with a clear framework and deadline for license applications now in place. The government’s focus on integrity measures, responsible gambling, and stringent advertising guidelines underscores a commitment to ensuring a fair and secure betting environment. As Brazil navigates the final steps toward formalizing online gambling, the nation appears poised to leverage this sector as a potential source of revenue for vital social projects. The journey, marked by regulatory hurdles and changing political landscapes, underscores the intricate path toward the legalization of sports betting in the country.
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