Sports Betting in Brazil Continues to Come Into Focus
Posted on: September 14, 2023, 06:36h.
Last updated on: September 14, 2023, 06:36h.
The framework for regulated sports betting in Brazil, operating under a provisional measure, continues to come into focus. The Chamber of Deputies, which has been anxious to launch a regulated market for years, approved an updated bill on Wednesday that better defines how the industry will work.
The updated language provides for a new distribution of revenue, as well as operator requirements and restrictions. The text incorporates parts of previous provisional measures and is now on its way to the Senate for that chamber’s approval, although there doesn’t seem to be any word on expanded gambling.
No Foreigners Allowed
Only companies incorporated under Brazilian law, with headquarters and administration in the country, will be able to apply for a sports betting license. This was discussed in connection with previous legislation, but has now been solidified, pending Senate approval.
It won’t be as simple as picking someone off the street and tapping them to be the “head of operations” in order to apply for a license. At least one member of the company must have verifiable knowledge and experience in some aspect of gaming operations.
The license will cost up to BRL30 million (US$6.1 million) and will only be granted to those who meet the requirements. The fee covers just one online betting app and must be paid within 30 days following approval.
That approval, at the discretion of the Ministry of Finance (MoF), may be for up to three years and is non-negotiable and non-transferable. If the authorized legal entity undergoes a merger or modification of shareholder control, the MoF will determine, on a case-by-case basis, if the license still has legitimacy.
Brazil Gets Larger Revenue Share
Previously, operators were going to be able to keep 95% of their gross revenues (after prizes and income tax). However, the new framework gives them 82%, in line with previous legislation.
Instead of 10% of the tax revenue going to the social security administration, as some lawmakers had sought, the sector will keep 2%. Brazil’s education system will receive 1.82% and sports organizations will get 6.63%. The tourism industry comes in second, picking up 5% in new funding.
Operators will have to remunerate clubs and athletes for the use of their names, brands and other symbols. Of the 6.63% share, 1.13% must be used for this purpose.
Another 0.5% of the amount will go to official state-level sports organizations. Half of this will be divided among the state’s municipalities based on their populations.
Of the allocation to the education system, 0.82% will go to schools of early childhood education or elementary and secondary schools that have achieved national assessment targets. The other 1% will stay with public technical high schools.
The 5% the tourism segment will receive will be shared between the Ministry of Tourism and Embratur, the Brazilian Tourist Board. The Ministry of Tourism will take 4% and Embratur the other 1%.
Ad Bans Forthcoming
There are also provisions addressing how operators can advertise their products and services. Logically, only licensed operators have the right to advertise in the country.
Ads cannot contain unsubstantiated claims about the odds of winning or about possible winnings that bettors can expect. They are prohibited from using personalities or celebrities who portray betting as a way to achieve wealth or better social standing.
No advertising or marketing content should be offensive to cultural beliefs or Brazilian traditions. In these situations, communication companies or internet providers and websites must withdraw the advertisement as soon as they receive a take-down notice from the MoF.
What has yet to be prescribed are any watershed periods for advertising. However, the language of the new bill includes a section that implies that these are on the table, and could be added at any time.
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Source: casino.org
