The South American nation of Brazil will finalize its gaming rules by the end of July. This is part of a larger plan to create a complete regulatory framework.
The nation will put fixed-odds wagering into practice in four stages, culminating in July of 2024.
The Brazilian Ministry of Finance has released a new order in the official publication. The order explains how the provisions approved by Law No. 3,626 will be put into effect in the coming months, with the aim of full implementation by the end of July 2024.
The order establishes the regulatory policy of the Secretariat of Prizes and Lotteries (SPA), a division of the Ministry of Finance, which will develop and issue future rules based on the guidelines.
The agency will focus on clarifying the legal aspects of the regulation, prioritizing the measures that need to be enacted most urgently.
“The main goal of this action is to systematically structure the regulatory schedule for fixed-odds betting in the country, representing a significant step forward in the management and regulation of the sector,” the Ministry of Finance stated in a press release.
“The order provides legal certainty, ensuring predictability and efficiency in the regulatory process, thus solidifying the foundation for a stable and reliable gambling environment in Brazil.”
The rollout will be done in phases, with the most important aspects being addressed first.
The publication of the regulations will be divided into four distinct stages, with a focus on priority.
The regulations will be released in four stages, with a focus on priority. Rules governing the application process for fixed-odds betting licenses will be made available in April. The initial stage will involve the publication of regulations outlining the technical, payment, and security standards that operators must adhere to. In the second stage, the SPA will unveil its anti-money laundering and anti-terrorism financing policies. It will also release rules pertaining to weapons of mass destruction proliferation and other forms of deception. Regulations outlining the requirements for operators to safeguard bettors’ rights and comply with legal obligations will also be published. The third stage will see the SPA publish technical and security requirements for online gambling. This stage will also establish procedures for monitoring gambling advertising. The final stage will outline procedures for allocating industry contributions to social responsibility initiatives.
The Brazilian industry is pleased to witness progress.
Following years of anticipation for the definition and implementation of online gambling in Brazil, the industry is eager to see progress. Hugo Baungartner, Vice President of Global Markets at Aposta Ganha, states that the Ministry of Finance’s plan is feasible, provided that other government agencies collaborate.
“This timeline is reasonable and attainable,” Baungartner remarked. “[The Ministry of Finance] simply needs to ensure that all other government agencies are aligned and do not impede the process.”
Nevertheless, he is worried about the definition of fixed odds.
It’s no surprise that some elements of the legislation have caused worry, as the industry has been eagerly awaiting progress in this field. In December 2023, President Luiz Inácio Lula da Silva signed Bill 3626, ushering in a new era for online gaming and sports betting in Brazil.
The bill encountered various obstacles during its approval process. In November, a proposal to entirely eliminate online gambling from the bill was rejected, only to be approved in December. Online gambling was promptly reintroduced by the House of Representatives.
The proposed tax rate also generated debate. Initially, the rate was set at 18% of gross gaming revenue (GGR). However, taking into account related taxes, the actual rate would reach 30.82%. In November, this percentage was lowered to 12%.
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