Plans to implement fixed-odds betting in Brazil will take place in four stages, ending in July 2024, representing the first step towards a regulatory framework.
Brazil’s ministry of finance published the new ordinance in Brazil’s Official Gazette of the Union. It outlines how the regulations approved in Bill 3,626 will be implemented in the coming months, with an aim to be completely implemented by the end of July 2024.
The order established the Regulatory Policy of the Prizes and Betting Secretariat (SPA), a ministry of finance body which will structure and publish the incoming regulation as per the guidelines.
The body will aim to provide clarity on the legal aspects of the regulation and prioritise the most pressing measures for enactment.
“This measure’s main objective is to systematically structure the regulatory agenda for fixed-odd betting in the country and represents a considerable advance in the management and supervision of this sector,” said the ministry of finance in a statement.
“The ordinance offers legal security, guarantees predictability and efficiency to the regulatory process and thus solidifies the foundations for a stable and reliable betting environment in Brazil.”
Roll-out organised by priority
The regulation will be announced in four stages, organised by priority:
- Stage one – until end of April 2024
- Stage two – until end of May 2024
- Stage three – until end of June 2024
- Stage four – until end of July 2024
During the first stage, regulations will be published regarding the technical, payment and security requirements operators must follow. Rules on how operators can apply for licences to operate fixed-odds betting will also be published in April.
During the second stage, the SPA will publish its anti-money laundering and anti-terrorist financing policies. It will also publish rules regarding the proliferation of weapons of mass destruction and other types of fraud. Rules that operators must follow to guarantee bettor’s rights and comply with legal provisions will also be published.
Stage three will see SPA announce the technical and security requirements for online gaming. Procedures for monitoring gambling advertising will also be made within this stage.
The final stage will outline procedures for allocating industry contributions to socially responsible causes.
Brazil’s industry pleased to see movement
After a years-long wait to define and implement online gambling in Brazil, the industry is keen to see progress. Hugo Baungartner, VP of global markets at Aposta Ganha, said the ministry of finance’s schedule is practical – if other government departments play ball.
“The schedule is reasonable and doable,” said Baungartner. “The [ministry of finance] just have to assure that all other government departments are on the same page and don’t block the process.”
However, he is apprehensive about how the fixed-odds concept will be defined.
Concern surrounding certain aspects of the bill will not be uncommon, as the industry has waited some time for movement in this space. President Luiz Inacio Lula da Silva signing Bill 3,626 into law in December 2023 represented the beginning of a new era for online gaming and sports betting in Brazil.
The bill faced battles on the road to ratification. An attempt to remove igaming from the bill altogether was rejected in November, then approved in December. Igaming was soon re-added by the chamber of deputies.
Controversy also raged over the proposed tax rate. The rate was initially set at 18% of gross gaming revenue (GGR). However, this would have actually been 30.82% when relevant taxes were taken into account. This was lowered to 12% in November.
