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Leading with Sports Betting, Brazil Suddenly Looks Ready to RegulatePublished October 3, 2019 by Lee R
Adaptive legislation has been facilitated by community dialogue, bringing South America's largest economy to the brink of regulation.
Some landmark progress has been made in the attractive yet often lugubrious Brazilian market.
BetConsult Legal Advisor Interviewed
BetConsult Legal Advisor Marcelo Munhoz da Rocha says sports betting could be regulated by October, in time for Q4 2019.
The BetConsult Advisor indicated to Gambling Insider that the way has been paved by Brazil's December 2018 approval of law 13756/2018, which legalised the fixed-odds sports betting.
While this legitimised the activity as a lottery type game in Brazil, the taxation and licensing system is still pending regulation, an adaptation which Brazil's Federal Administration already set about tackling with public consultations in August under the auspices of the Ministry of Economy.
Initial Regulation Decree
According to Munhoz da Rocha, an initial regulatory decree has since been disclosed to the gaming community community. The decree calls for the operation fixed-odds sports betting in a free market environment, in an authorisation-based model calling a set of fixed requirements that applicant operators or consortiums must meet to gain licensure in Brazil.
Second Round of Consultation
A complementary decree to fill in the finer points is scheduled to be generated at the end of a second public consultation concluding September 27th. The new decree will specify license fees, license terms, taxation, and other incurring fees.
The costs of fees have not been made official yet, but are expected to run approximately R$3m (US$723,150), which Munhoz da Rocha called a “good deal” for a market as large and attractive as Brazil. Considering how long it has taken for Brazil to come up with some regulation plans with teeth, it is highly doubtful that organisational stakeholders would argue at this stage or level.
Harnessing Extant Activity
Munhoz da Rocha re-emphasised the demonstrated value of regulating, due to the untapped gaming activity already well known to be taking place at the black market level in Brazil.
He acknowledged that “the illegal, or grey, sports betting market is already very valuable and has users in Brazil,” and looks forward to a regulation model shedding legal light on “an activity already a part of the Brazilian sports fan.”
Outlook: Get Ready
With the biggest hurdles merely some minor amendments, Munhoz da Rocha has provided a valued expert opinion that seems to signal the ushering in of full blown regulated iGaming in Brazil.