Brazil Regulation Process Slow, but Picking Up MomentumPublished January 23, 2021 by Lee R
The regulation process in Brazil is taking clear shape if not as quickly as operators might prefer.
January marked over three years since Brazil legalized sports betting without a bet being placed.
Brazil Regulation History
South America's massive leading market legalised sports in December of 2018, but legal sports betting is expected to be in place for the 2022 World Cup.
It will be more than three full years before the first legal wager is placed.
Model is Due
Economy Ministry undersecretary Waldir Eustáquio Marques Jr. has set an ETA for finalisation of rules governing Brazil's incoming sports betting industry for the end of July 2021.
At that point license applications are set to be reviewed and issued, placing the ETA for the first legal sports bet at sometime in early 2022.
Reason for Deliberation
The seemingly glacial pace has actually been deliberately set, according to Marques:
“Sports betting has some peculiarities, different from traditional lotteries, and includes much stronger technology requirements.”
Marques explained priorities of deliberation to consider the competitive integrity; prevention of money laundering; and the prevention of “pathologies among vulnerable players.”
The process includes study on the part of the administrators along with participation in events and training on effective regulation, to prepare the country for World Cup betting to kick off the legal sports betting era in Brazil.
Origin of Legislation
The 2018 legislation originates from a corruption scandal in 2018 that spurred then-President Michel Temer to sign bill PM 846 legalizing sports betting into law. Brazil’s Congress has since been authorized to determine regulations that will oversee sports betting.
Federal savings bank Caixa operates Brazil's lottery, which is the only legal form of commercial gambling available in the jurisdiction, with the lottery at this juncture set to issue licenses and govern the industry.
Outside Operator Interest
There is plenty of interest among the world’s leading sports betting firms.
Leading operators already interested include William Hill fresh off of last month's majority purchase in Colombian gaming firm Alfabet; along with Flutter Entertainment subsidiary FanDuel, which through a new alignment with Caribbean sports betting operator CAGE Sports is reaching into South America.
With Latin America remaining a veritable gold mine for sports betting, Brazil's developments are likely being monitored by a diverse greater array of operators.