Brazil Poised to Become Major Player in Sports Betting Arena

Anticipated to be operational by the last quarter of 2019, Brazilian sports wagering regulations are pending. This follows a phase of legal uncertainty. While fixed-odds sports betting gained legal status in December 2018, the government’s establishment of a regulatory structure has been awaited.

To propel progress, a public consultation was initiated by the government in August, seeking industry feedback on pivotal matters such as taxation and licensing. Leveraging this input, a preliminary decree has been formulated, envisioning sports betting within a competitive landscape. Licenses would be granted to operators fulfilling specific requirements.

Nonetheless, this remains a developing situation. A second consultation phase, concluding on September 27th, is currently underway, aiming to solidify the regulatory framework’s specifics.

The anticipated new ordinance is slated to provide clarity on permit costs, the duration of license validity, and particulars such as levies and supplementary charges that proprietors will be obligated to remit.

**What will the price tag of the license be?**

Although an official declaration is pending, projections indicate that a permit could entail a fee of R$3 million (USD 723,150). Nevertheless, this figure awaits confirmation in a forthcoming regulatory decree.

**Will this pose an obstacle to market entry for providers, or is it deemed feasible?**

Given the adoption of a licensing framework, the remittance of R$3 million to conduct operations legally within a regulated Brazilian market is likely to be perceived as an advantageous prospect for both providers and investment entities.

**What shifts have occurred in public attitudes toward wagering on sporting events?**

The illicit or “shadow” sports wagering sector is already substantial, boasting a considerable user base in Brazil. Legalization and regulation aim to introduce legal certainty to an activity already ingrained in the routines of Brazilian sports enthusiasts and transform it into a taxable pursuit.

Media conglomerates, once staunch opponents of legalization, have modified their stance on the matter. It is now commonplace to encounter promotional content related to sports wagering on television and through other media channels.

**When can the commencement of sports betting operations in Brazil be anticipated?**

Projections suggest that the finalization of regulations will transpire in the concluding quarter of 2019, with the subsequent issuance of licenses.

South America’s largest nation is on the cusp of a major shift in sports wagering! Although lawful since 2018, the last obstacle – finalizing the rules and issuing permits – is all that remains. There is, however, a slight catch: the fate of uncollected prizes. It appears Congress may need to adjust the initial legislation (Law No. 13,756, for those taking note) to address this issue. Nevertheless, prospects are bright for Brazil to at last possess a completely regulated sports gambling sector.