iGaming News

Brazil, one of the world’s leading football nations, has taken a historic step by legalizing sports betting. It’s a move that represents significant progress, particularly after years of delays and political challenges. This article explores the path Brazil took to achieve this landmark, along with the specific regulations introduced.

The legalization of sports betting in Brazil is a watershed moment in the nation’s gaming industry.

Jonathan Archer – Newmen

History of Sports Betting in Brazil

Provisional Measure (PM) Implementation

The road to regulated sports betting in Brazil reached its peak with the signing of Provisional Measure No 1,182 by President Luiz Inácio Lula da Silva. This signing enabled the 2018 Brazil sports betting regulations approved in Law No 13,756 to be passed, ushering in a new era for the nation’s gaming industry.

Regulation Details

Tax and Revenue Distribution

One of the amendments to the law has been a slight increase in the gross gambling revenue tax, from 16% to 18%. This change aims to direct more revenue to the Ministry of Sports, raising the amount from 1% to 3%.

Licensing and Foreign Operators

The legislation clears the way for foreign operators to apply for licenses, something that was ambiguous in the original regulations. The cost of obtaining a license is also expected to increase, reflecting the newly introduced amendments.

Advertising and Marketing Restrictions

The law also establishes comprehensive marketing and advertising restrictions, including the promotion of responsible gambling and a prohibition on acquiring broadcast rights for sports. Adherence to the National Council for Advertising Self-Regulation (CONAR) standards is expected.

New Regulatory Body – National Secretariat for Games and Betting (SNJA)

The Ministry of Finance is in charge of establishing the SNJA, a new regulatory body responsible for overseeing the sector. Hiring has been underway, and the SNJA will be tasked with defining licensing procedures and other technical regulations.

Long Road to Legalization

Timeline from 2018 to 2022

The journey began in 2018, with lawmakers in Brazil voting to approve both land-based and online sports betting. It was a lengthy process, extended by the then-president Jair Bolsonaro’s unwillingness to approve final regulations.

Impact of Political Changes

The 2022 election saw President Lula, known to be more friendly to the gambling sector, emerge victorious. Alongside match-fixing scandals leading to public pressure, this proved instrumental in moving the regulations forward.

Match-Fixing Scandals and Public Pressure

Scandals and public outcry over match-fixing have contributed to the urgency in regulating the activity. These events have certainly added momentum to the process of legalization.

The legalization of sports betting in Brazil is a watershed moment in the nation’s gaming industry. With careful considerations regarding tax, licensing, advertising, and the establishment of a new regulatory body, Brazil has embarked on a promising path. It has not only aligned itself with global standards but also ensured that the interests of both the government and operators are met. The long journey, filled with delays, political nuances, and public pressures, has finally reached a fruitful conclusion.