Zona de Azar Malta – WA Technology: Brazil’s Bright Future in Betting & iGaming: New Regulatory Era

Brazil.- 30th November 2023 www.zonadeazar.com Welcome to the dynamic world of Brazilian gambling regulations. The recent surge in legislative activity has reshaped the Brazilian iGaming and gambling industry, with critical changes in sports betting and online gambling. Let’s dive into the intricacies of these groundbreaking developments as they continue to evolve.

The Pioneering Moves of Senator Romário

Romário, a notable figure in Brazilian politics and sports, is pivotal in developing Brazil’s sports betting regulations. His report, crucial to the approval by the Senate Committee, introduced significant amendments to the gambling landscape. Notably, Romário extended the licence duration for betting operators from three to five years while, on the face of it, seeming to prohibit some other forms of online gambling. This decision marks a balancing expansion with stringent control.

The Framework of PL 3626/23

PL 3626/23 is the cornerstone of Brazil’s new gambling regulations. This legislation outlines the operational modalities for betting, including physical ticket purchases and virtual platforms. Interestingly, it introduces fantasy sports as a recognised betting modality, exempt from standard lottery regulations – great news for fantasy sports fans! The act also defines the prerequisites for authorisation, emphasising Brazilian incorporation, technical capabilities, and stringent internal controls against money laundering and other illicit activities.

Latest Development: Tax Rate and iGaming Inclusion

As of 22nd November 2023, the Brazilian Economic Affairs Commission (CAE) has approved Bill 3,626/23, setting a reduced % tax rate for sports betting at 12%. Efforts to remove iGaming from the legislation were rejected. The Senate is scheduled to vote on this bill on 28th November, potentially finalising the inclusion of sports betting and iGaming in Brazil’s legal framework.

Authorisations & Compliance

Under PL 3,636/2023, the Ministry of Finance is pivotal in authorising fixed odds betting systems. This process includes rigorous evaluations of technical, financial, and reputational aspects. The authorisation, lasting five years, requires a fee of R$30 million, highlighting the government’s commitment to a regulated and profitable betting environment.

Marketing & Advertising: A New Ethical Framework

The new regulations impose ethical boundaries on marketing and advertising in the betting sector. Promotional materials must now include disclaimers about gambling risks, with strict prohibitions against misleading claims and endorsements by public figures. These measures aim to foster a responsible gambling culture, minimising potential social harm.

Prize Claiming & Allocation of Unclaimed Prizes

An interesting aspect of the new regulations is the stipulation regarding unclaimed prizes. Bettors now have a 90-day window to claim their winnings, after which unclaimed amounts are split between the Student Financing Fund and the National Fund for Public Calamities. This approach encourages timely prize-claiming and contributes to broader social causes.

Ensuring Integrity & Preventing Fraud

The new law takes a strong stance against match-fixing and fraud, rendering bets made through fraudulent means void. Additionally, it outlines a list of individuals prohibited from betting, including minors and those with potential conflicts of interest, to uphold the integrity of betting activities.

Penalties for Non-Compliance

In the case of infractions, the law sets forth a range of penalties, from warnings to substantial fines and activity suspensions. This framework ensures that operators adhere to regulations, maintaining the industry’s credibility and reliability.

Revenue Distribution: Supporting Social Causes

One of the most commendable aspects of the new regulations is allocating betting revenues to various social and developmental sectors, including sports, tourism, and education. This strategic distribution underscores the government’s commitment to leveraging gambling revenues for societal benefits.

Brazil in Summary

The recent developments in Brazilian gambling regulations mark a significant shift in the industry, reflecting a balance between growth and responsible governance. These changes redefine the operational landscape for operators and demonstrate a progressive approach to leveraging gambling for societal good.

The ongoing evolution of Brazil’s iGaming landscape continues to captivate industry experts and key players. The recent developments, including the setting of a more favourable tax rate and the firm inclusion of iGaming, signify a robust and inclusive betting environment. This progress, alongside the anticipated finalisation of regulations, underscores Brazil’s commitment to a comprehensive and responsible gambling framework.

Stay tuned for more exciting news from Brazil in the coming weeks.

Source: WA Technology

Edited by: @MaiaDigital www.zonadeazar.com