Brazil Betting Laws Targeted for Completion by This Summer

Late in December, Brazil made an important step to regulate sports betting by legalizing the activity. Similar to other jurisdictions, the process is complex and requires extensive policymaking that takes time to be considered and implemented. Still, it is likely that bettors and sports fans in the country will be able to place their first legal wagers at some point in the second half of the year.

The likelihood of establishing the complete regulation by July was reaffirmed by Brazil’s Ministry of Finance. The Ministry published a new plan, outlining a detailed approach toward the establishment and implementation of regulations for sports betting. Ultimately, per this plan, the process is expected to be completed by the end of July this year.

The newly released plan designates the Prizes and Betting Secretariat (SPA) in charge of the regulatory framework and policymaking processes. The aforementioned plan features a total of four stages, setting the end of April as the deadline for stage one and the end of July for stage four.

During each of the stages, the SPA will focus on different priorities regarding the regulations of sports betting and online gambling. By the end of stage four in July, the Secretariat would have established a robust framework for the regulation of iGaming and sports wagering in Brazil. This will likely be one of the major steps before the launch of legal wagering in the country.

The Country Plans to Establish Robust Regulations

The first phase of the policymaking process will involve the publication of technical, payment, security and other requirements for the operators. The SPA will also announce the regulations applicable for operators interested in securing a license in Brazil during this phase. Per the current plans, the license cost would be approximately $6 million.

After that, the second stage of the process will be initiated. During this phase, the Secretariat will release details regarding the anti-terrorism financing and anti-money laundering regulations the operators would have to adhere to.

During the third phase, set to last until the end of June, the SPA will publish a set of rules applicable to online gambling operators. These rules will include provisions related to security and advertising, among other requirements.

Finally, during the fourth stage of the SPA’s plan, it will disclose details regarding the regulations for funding of social causes with money generated from gambling activities. The Secretariat will highlight how such causes will be funded and also outline a framework for responsible gambling which the iGaming and betting operators would have to comply with.

The described process may be lengthy, but it is mandatory. This is because lawmakers in Brazil want to ensure that the regulations are effective and besides providing iGaming and betting entertainment, can also protect consumers from excessive gambling activities. Considering the potential of the gambling sector in Brazil, many betting and online gambling operators are already drawing plans for their expansion in the country.