The South American nation of Brazil is set to complete its gambling rules by the end of July. The Ministry of Finance has released a new order in the official publication of the Brazilian government outlining how the rules approved in Law 3,626 will be put into practice in the coming months, with the goal of full implementation by the end of July 2024.
The order establishes the regulatory policy of the Secretariat of Prizes and Lotteries (SPA), an agency of the Ministry of Finance, which will create and release the upcoming regulations based on guidelines.
The agency will concentrate on clarifying the legal aspects of the regulation and prioritizing the most urgent measures for publication.
“The main goal of this action is to systematically build the regulatory agenda for fixed-odds betting in the country, representing a significant advancement in the management and regulation of the industry,” the Ministry of Finance stated in a press release.
“The order provides legal security, guaranteeing the predictability and efficiency of the regulatory process, thus solidifying the foundations of a stable and reliable gambling environment in Brazil.”
A phased rollout organized by priority
The guidelines will be issued in four stages, ordered as follows:
In the initial stage, rules concerning technical, payment, and security needs that operators must adhere to will be issued. Regulations on how operators can apply for fixed-odds betting licenses will also be revealed in April.
The second stage will see the SPA release its anti-money laundering and counter-terrorism financing policies. It will also publish rules regarding the proliferation of weapons of mass destruction and other forms of deception. Regulations that operators must follow to safeguard bettors’ rights and comply with legal rules will also be announced in this stage.
The third stage will see the SPA announce technical and security requirements for online gaming. This stage will also establish procedures for overseeing gambling advertising.
The concluding stage will outline procedures for allocating industry contributions to social responsibility programs.
Brazilian industry is pleased to see advancement
After years of waiting 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, stated that the Ministry of Finance’s plan is practical – if other government agencies collaborate.
“This timeframe is reasonable and attainable,” Baungartner said. “[The Ministry of Finance] simply needs to ensure all other government agencies are in agreement and don’t impede the process.”
Nevertheless, he was puzzled by the meaning of fixed odds.
It’s not unexpected that some parts of the legislation have sparked worries, as the sector has been eagerly anticipating advancement in this field. In December 2023, President Luiz Inácio Lula da Silva authorized Bill 3626, signaling the dawn of a new era for internet gaming and sports wagering in Brazil.
The bill encountered numerous obstacles during its approval process. In November, a suggestion to completely eliminate online gaming from the bill was dismissed, and subsequently, it was endorsed in December. Online gaming was then reintroduced by the House of Representatives.
There was also debate surrounding the proposed tax rate. Initially, the rate was established at 18% of Gross Gaming Revenue (GGR). However, taking into account related levies, this would effectively amount to 30.82%. This percentage was decreased to 12% in November.
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