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Brazil Legalizes Sports Betting After Years of Delays

After years of delays, sports betting has finally been legalized in Brazil. President Luiz Inácio Lula da Silva signed the Provisional Measure (PM) to implement the 2018 law, making it a historic moment in the country's journey to regulate sports betting.

Brazil Legalizes Sports Betting After Years of Delays

The signing of Provisional Measure No 1,182 means that the 2018 Brazil sports betting regulations, approved in Law No 13,756, have now been passed with some amendments.

The PM introduces several changes to the original 2018 law. It includes a slightly higher gross gambling revenue tax, increasing it from 16% to 18%. The purpose of this change is to boost the revenue flowing to the Ministry of Sports from 1% to 3%. Additionally, the licence fee is expected to increase to R$30 million ($6.35 million) from the previously established R$22.2 million.

The creation of the National Secretariat for Games and Betting (SNJA), charged with regulating the sector, was not part of the original regulations. The Ministry of Finance will now begin the process of establishing the SNJA, and it is expected to hire 70 employees for this purpose.

With the PM in place, the Brazilian legislature, the National Congress, now has 120 days to approve it, although the government has already issued it unilaterally. However, as of now, the regulation is considered the law of the land.

The law also introduces more detailed marketing and advertising restrictions compared to the 2018 law. Operators will be required to promote responsible gambling messaging and are prohibited from acquiring broadcast rights for sports. Gambling businesses are expected to adhere to the National Council for Advertising Self-Regulation (CONAR) standards.

The long journey towards regulating sports betting in Brazil started in 2018 when lawmakers voted to approve both land-based and online sports betting. Delays followed, and it took until May 2022 for the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP) to publish its rules and regulations for sports betting. The final deadline for President Jair Bolsonaro to approve the regulations was December 12, 2022, which he did not do. However, after the 2022 election, President Lula took office and signed the PM, finally legalizing sports betting in Brazil.

The legalization comes in response to public pressure and match-fixing scandals in the country, pushing for the regulation of sports betting. With the new regulations in place, Brazil opens up new opportunities for operators, and the establishment of the SNJA will play a pivotal role in overseeing the sector's development.

Sports betting enthusiasts and operators are now looking forward to the implementation of the regulations and the establishment of a regulated and transparent betting market in Brazil. The legalized sports betting market is expected to attract significant investments and generate substantial revenue for the country's sports industry.

However, it remains to be seen how the National Congress will respond to the PM within the 120-day period. While the current regulations have become the law of the land, any potential challenges or objections from lawmakers could impact the implementation process.

With the legalization of sports betting, Brazil joins the growing list of countries worldwide that have embraced the industry. The move is expected to create a competitive market and bring in international betting operators eager to tap into the Brazilian market's potential.

For now, industry stakeholders and enthusiasts are eagerly awaiting further developments in the sports betting landscape in Brazil and are hopeful that the newly legalized market will bring numerous benefits to the country's economy, sports sector, and betting enthusiasts alike.



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