Brazil is on track to complete its gambling rules by the end of July. This is part of a larger plan to create a comprehensive regulatory framework for the country’s gambling industry.
The Brazilian government has outlined a four-step process for implementing fixed-odds betting, with the final stage set for July 2024. The Ministry of Finance has released new guidelines in the official government publication, detailing how the provisions of Law No. 3,626 will be put into practice over the coming months.
The new rules establish the regulatory authority of the Secretariat of Prizes and Lotteries (SPA), a division of the Ministry of Finance. The SPA will be responsible for creating and issuing future regulations based on the guidelines provided.
The agency will focus on clarifying the legal aspects of the regulations and prioritizing the most urgent measures for implementation.
The Ministry of Finance stated that the primary goal of these measures is to systematically develop a regulatory agenda for fixed-odds betting in Brazil. This represents a significant step forward in managing and regulating the gambling sector.
The regulations provide legal clarity, ensuring predictability and efficiency in the regulatory process. This will create a stable and reliable gambling environment in Brazil.
The implementation of the regulations will be done in phases, with priority given to the most important aspects.
The rules will be unveiled in four stages, with the following order of importance:
Following years of anticipation and definition, the Brazilian online betting industry is eagerly awaiting advancements. Hugo Baungartner, Vice President of Global Markets at Aposta Ganha, stated that the Ministry of Finance’s plan is practical, provided that other government bodies collaborate.
“This schedule is sensible and attainable,” said Baungartner. “[The Ministry of Finance] simply needs to ensure all other government agencies are in harmony and do not obstruct the process.”
The initial stage will reveal regulations concerning the technical, payment, and security standards that operators must adhere to. Guidelines on how operators can apply for fixed-odds betting licenses will also be disclosed in April.
In the second stage, the SPA will disclose its anti-money laundering and counter-terrorism financing strategies. It will also announce rules regarding the proliferation of weapons of mass destruction and other forms of deception. Furthermore, regulations will be announced that operators must comply with to protect bettors’ rights and comply with legal regulations.
The third stage will witness the SPA announce the technical and security requirements for online gambling. This stage will also establish procedures for monitoring gambling advertising.
The concluding stage will outline the procedures for allocating industry contributions to social responsibility initiatives.
The Brazilian industry is pleased to observe progress.
Nevertheless, he was puzzled by the meaning of the fixed odds idea.
It’s not unexpected that certain parts of the legislation have ignited debate, as the sector has been patiently awaiting advancement in this domain. In December 2023, Brazilian President Luiz Inácio Lula da Silva signed Law No. 3626, signaling the start of a new chapter for internet gambling and sports wagering in Brazil.
The legislation encountered hurdles during its approval procedure. In November, a suggestion to entirely eliminate online gambling from the bill was turned down, followed by its acceptance in December. Online gambling was promptly restored by the House of Representatives.
There was also disagreement regarding the proposed tax percentage. Initially, the percentage was established at 18% of gross gaming revenue (GGR). However, taking into account associated taxes, the actual percentage would reach 30.82%. In November, the percentage was reduced to 12%.
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