Zona de Azar Brazil – Brazil: New Rules for Betting Shops in Maracanã Concession

Brazil.- August 20, 2024 www.zonadeazar.com This Thursday, the 15th, the Civil House Secretary authorized the inclusion of a clause that prohibits the commercial exploitation of betting shops and lotteries without the concession of Loterj or the Federal Union in the Maracanã Complex. The deadline for signing the 20-year concession contract for the Maracanã Complex has been extended by 60 days for the company formed by Fluminense and Flamengo. Currently, only five betting shops are credentialed by Loterj, including Pixbet, Flamengo’s main sponsor.

Superbet, Fluminense’s main sponsor, was the second betting shop to request regularization with the Union.

As stipulated in the tender launched last year, the rule meets a request from Loterj, which seeks compliance with the current legislation in Brazil, including tax regulations. Therefore, to advertise in Maracanã, the betting shop needs to have a formal concession from Loterj or the Union.

Currently, 25 companies are in the process of being accredited with the Union, 15 of them having submitted applications this week, such as bet365. In Rio, only Pixbet, Apostou, Bestbet, Rio Jogos, and Marjosports have applied for authorization to operate in the state.

The document that will be signed by the Special Purpose Entity (SPE) with the Rio Government includes the clause: “The CONCESSIONAIRE is prohibited from advertising and/or merchandising, directly or through a third-party company, within the Maracanã Complex, betting shops that do not have formal authorization from the Rio de Janeiro State Lottery – LOTERJ or the Federal Union, as per Decree No. 48.806/23.”

In a note to ge, Fluminense stated that “the clause mentions the need for authorization from LOTERJ or the Federal Union. The federal regulation (PORTARIA SPA/MF No. 827, OF MAY 21, 2024) establishes that the deadline for compliance for legal entities operating in Brazil ends on December 31 (art. 24). It also states that those who requested authorization by August 20 will have their request reviewed by December 31 (art. 23). Therefore, currently, there are no companies operating illegally from a federal perspective. This could only happen on January 1, 2025, for those who do not have the authorization. The SPA website publishes who made the requests, and Superbet is listed there: https://sigap.fazenda.gov.br/consulta-publica/lista-solicitacoes.”

Loterj Grants a R$ 5 Million License

Loterj launched a tender in Rio and has already authorized some companies, with a license of R$ 5 million. The case has raised concerns from other states and the Ministry of Finance.

In addition to asking for an amount lower than the R$ 30 million established by the federal government, the model adopted by Rio de Janeiro allows for some flexibility. For example, companies can declare their headquarters in Rio but operate throughout the country without meeting regional criteria. Loterj claims that it is supported by STF decisions.

Edited by: @_fonta www.zonadeazar.com