- Brazil’s Secretariat of Evaluation, Planning, Energy and Lottery has published new rules for sports betting
- Brazilian companies will need to cover a license fee of $4.4 million to be allowed to operate
- There will be no limitation to the number of licenses a company can obtain
Image Source: Depositphotos.com (Photo by Dessie_bg)
In the context of Brazil still trying to figure out the best way to go about the gambling industry and the necessary laws for it, the Secretariat of Evaluation, Planning, Energy and Lottery (SECAP) has announced the introduction of a set of sports betting regulations for gaming operators. The rules will cover a new license fee worth BRL22.2 million ($4.4 million) that companies will need to pay in order to operate in the country. Let’s see what else will the SECAP rules bring new to the table. The bill is still pending approval in the Senate. The new rules will come into effect three months after President Jair Bolsonaro will sign them into law on May 10.
Brazil’s Ministry of Economy Will Regulate the Sector
According to the newly published regulations, the Ministry of Economy will regulate the industry. The ministry will be responsible for setting up a deadline for gaming operators who wish to continue to do business and offer their services to Brazilians. The respective deadline will fall within the upcoming six months, during which current operators will need to purchase a license. New licenses will be valid for five years and will cost BRL22.2 million ($4.4 million) apiece. Operators will be able to purchase an endless number of licenses and provide bets on esports and classic sports to bettors of the legal age for gambling. The regulations strictly prohibit operators from offering their services to minors.
A newly licensed operator will need to promote responsible gambling and offer information regarding safe gambling to its players from the day of its launch. The messages will need to be a part of their marketing efforts. Ads cannot target or include minors or present gambling as a means of reaching monetary stability, finding an alternative to their regular job, or fixing a professional, personal, or educational problem.
Special Licensing Conditions for Outsiders
Gaming operators with headquarters outside the country will be required to establish subsidiaries in Brazil and gather enough capital as well as “economic and financial capacity” in order to be allowed to operate in the country. The financial capacity of an operator will be deemed “sufficient” by the link between the share capital and the volume of bets the operator can take. The financial capacity will not be determined by a minimum capital requirement.
All licensed operators in Brazil will need to show proof of a contractual partnership with an international integrity monitoring association like the International Betting Integrity Association.
The Ministry of Economy will also introduce an experimental sandbox regime that will enable some operators to benefit from an early launch prior to the complete setup of the system.
At the end of February, Brazil voted to move ahead with a bill that would legalize sports betting and gaming.