In December 2018, Brazil made wagering on sporting events legal, categorizing it as a form of lottery. However, a structured set of rules was still required from the government. To collect opinions from industry participants on crucial elements such as taxes and permits, they started a public dialogue in August 2019.
Drawing from the consultation’s responses, a proposed regulatory order suggests a licensing system where providers would have to fulfill certain requirements to offer sports betting. This order, though, is anticipated to go through additional modifications. The Economics Ministry has commenced another phase of public discussion, scheduled to conclude on September 27th, implying that additional decrees are forthcoming. The industry anticipates that the regulatory structure will be completed by the close of 2019, clearing the path for a legitimate sports betting market.
The recently announced ordinance is anticipated to shed light on the procedure for obtaining sports wagering permits in Brazil. This includes the price of the licenses, their duration, and other specifics such as levies and charges.
Although the initial cost was not verified and ignited considerable discussion, it is projected to be approximately R$3 million (USD 723,150). This will probably be affirmed in the supplementary regulatory decree.
While a substantial amount, this permit fee is foreseen to be a prudent expenditure for businesses aiming to penetrate the vast Brazilian market. The expense is likely to be eclipsed by the advantages of operating legitimately within a regulated sector.
Regarding the market, the Brazilian populace has become more receptive to the concept of legalized sports wagering. This transformation is partially attributed to the pre-existing extensive and profitable illegal betting market. Legalization and regulation will furnish much-needed transparency and legitimacy to an activity in which numerous Brazilians already engage. Furthermore, it enables the government to generate tax income from it.
Even media organizations, once steadfast adversaries of legalization, have altered their stance. It is now prevalent to observe sports betting promotions on television and other media platforms, signifying a notable change in public and commercial sentiment.
Despite some initial setbacks, the regulatory structure is expected to be concluded shortly, clearing the path for licenses to be granted and for legal sports betting to finally commence in Brazil.
Okay, so Brazil is keen on legalizing sports wagering, however, there are a couple of hitches. Legislation was enacted in 2018, but it lacks specifics regarding the fate of uncollected prizes. They need to iron that out. Additionally, they haven’t completely established all the regulations and guidelines, or the process for granting permits to businesses interested in providing sports betting services. Once they resolve those matters, they’ll be ready to launch.
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