2 August 2019
Eduardo Morales Hermo

Brazil sports betting (fixed odds and more) regulation

(Brazil).- Brazilian sports betting regulation - including fixed odd betting – for both retail and online, looks as if it could have a draft of a law by the end of 2019, which does not mean that the law will be approved by that time; it will be only the trigger that will start the development and implementation of the sports betting regulation in the country.

Brazil legislators approved i November of 2018 Brazil a regulation for Sports Betting, under Provisional Measure 846/2018 and the Law 13,756/2018, which was Sanctioned by the President of the Republic in December of 2018.

Under this law the government is to decide which is the best licensing model to be established, and there could be two models for sports betting license bid:

a)     Authorization:

-       Applicant candidates must comply with the established requirements to obtain a license

b)     Concession:

-       A limited number of licenses will be established.

-        The duration period of the licenses would be 10 to 15 years; also subject to a tender requirements condition.

These are tentative options in which the responsible of the regulation is working on, but have not been determined as yet.

Possible first draft of the sports betting regulation shall be ready by the end of 2019, and will then be open to implementation during 2020 depending on how fast the authorities can cope with the regulatory procedure and the respective licensing process which will require capable and expert resources to analyse and decide on the overall regulatory development and eventually its implementation.

The sports betting regulation draft has to be submitted to the Congress for approval and only there after can be developed and implemented.

 In the meantime, the Brazilian Official Gazzete published on Monday July 29th, the opening of a consultation regarding the sports betting regulation which will be open online from 30th July till 30th August 2019, where those interested in contributing must register and publish their ideas or suggestions on the topic such as:

·    Licenses to be issued by concession or permit

·    Minimum number of companies to be licensed

·    Which government agency or regulatory body is best suited to regulate and control the activity?

·   If the  proposed taxation & payout rates  are the adequate

·    How shall the government deal with offshore non authorized operators to protect licensed operators,

·    Any other suggestions of changes to the existing legislation to be implemented

·    Amendments or changes in that might be necessary in other Brazilian laws in order to develop the sports betting regulation under scrutiny.

The respondents must explain the reason for their suggestions

On the other hand, Law No. 13.756 has to be developed in order to establish some of the distribution and collection model for this new sports betting product since it was originally made for distribution and lotteries collection.

Gambling Compliance report on Brazil’ + 200 million inhabitants sports betting market value, for both online and retail, provides an estimated of annual GGR, once market consolidated, from US$1bn to US$1,5bn; and in the same report they estimate that around 70% of the revenues will come from the online + mobile channel.