Brazil reveals income from regulatory fees in first quarter of regulated online gambling

The Ministry of Finance has published its first economic analysis of the newly regulated industry 

Brazil.- The Ministry of Finance (MEF) has published its first economic analysis of the country’s newly regulated online gambling industry, which launched on January 1. The data, made available via Brazil’s Transparency Law, shows online gambling operators contributed R$21.5m (€4m) in regulatory fees in the first quarter of the year. 

This includes the market supervisory levy, which is based on operating and maintenance expenses. As reported by Focus Gaming News Brasil, the haul remained steady over the three months of the quarter, at R$6.8m in January and R$7.2m in February and March. The MEF is also due to collect R$30m (€5.5m) in outstanding licensing fees.

To operate in the Brazilian market, each company must pay a fee of R$ 30m (€5.2m) for a five year licence and pay supervisory fees.

Calculation of bonuses for GGR

Meanwhile, the national regulator, the Secretariat of Prizes and Betting (SPA), has clarified the methodology for calculating GGR with respect to promotional play. Technical note 1263 was issued in response to questions from federal deputy Gilson Marques (Novo-SC).

The note confirms that bonuses that can be withdrawn count toward GGR only when they are wagered, while non-withdrawable bonuses, such as free bets, must be included when issued even if the player doesn’t use them. According to the SPA, the aim is to dissuade operators from overdoing promotions, which it fears could encourage problem gambling.