Sports betting in Brazil: government publishes provisional notice of regulation
The federal government has advised stakeholders of the imminent regulation of sports betting.
Brazil.- The federal government of Brazil has published a provisional notice of rules for its imminent regulation of fixed-odds sports betting. The rules were drafted by the Ministry of Finance and still have to be signed off by Brazil’s president.
Once signed off, the proposals will be passed to the chief of staff and ministries will begin to enact regulations and create systems for the market. The ministries of Planning, Management, Health, Tourism and Sports will be involved in the implementation of the regime, while a new gaming secretariat created by the Ministry of Finance be responsible for approving applications and monitoring betting volumes and revenue.
Once licenses are granted only licensed operators will be allowed to accept bets on official events. Unlicensed operators will be banned from advertising in any way. Finally, the proposed sports betting tax rate is 16 per cent after the Ministry of Sport requested more funds for sports. That will be charged on revenue obtained minus prizes paid out. Player prizes would be taxed at 30 per cent on prizes of over BRL 2112 (€395).
Operators will be required to carry out campaigns of awareness and prevention around gambling harms. Specific rules for advertising and marketing rules will be drawn up with the National Council for Advertising Self-Regulation (CONAR).
In the meantime, operators in the newly formed Brazilian Institute for Responsible Gaming (IBJR) have committed to a code for advertising self-regulation. The Brazilian Code for Advertising Self-Regulation is the new body’s first major initiative.
The code’s measures include banning betting advertisements on TV in Brazil between 6am and 9pm to reduce exposure among minors and promote responsible communications from market launch. Gambling ads on TV would also be banned during and one hour before and after sporting events.