After Years of Waiting, Sports Betting Finally Legalized in Brazil

After many obstacles the sports betting advocates faced through the years, sports betting is finally legalized in Brazil. Luiz Inácio Lula da Silva, the president of the country, finally signed the Provisional Measure No. 1.182 (PM).

Waiting for the Congress:

The PM is signed to approve the implementation of the law in 2018 and legalize sports betting; however, not without a few amendments.

These amendments included increasing some fees and taxes, such as gross gambling revenue tax and license fee but also made betting more secure by introducing more severe marketing restrictions. 

According to Brazilian laws, after the president approves the decision, the National Congress has to approve it in the next 120 days. While awaiting the Congress’ decision, the law is officially valid in Brazil.

The next step is creating the regulator of the sector, a National Secretariat for Games and Betting (SNJA), which will be established by the Ministry of Finance. The new regulatory body will have 70 employees, as planned, and it will be in charge of creating unique license procedures and other necessary stuff.

Besides establishing SNJA, there are other changes compared to the 2018 law. Among other things, the tax on revenue is 18% instead of 16%, so the Ministry of Sports can get 3% of all revenue. The same works for the license costs: they will be R$30m ($6.35m) instead of the planned R$22.2m. 

However, nothing has changed for foreign operators who want to expand to the Brazilian market: sports betting in the country is still prohibited to them, although the previous law gave hope that that will change with new regulations.

According to the source, the marketing and advertising strategy will be carefully monitored, and restrictions will be more detailed. 

Responsible gaming messages will be mandatory while advertising, and the broadcasting right for the sports won’t be given to them.

The gambling industry will have to comply with the National Council for Advertising Self-Regulation (CONAR) standards.

A long journey to legalized sports betting:

In 2018, Brazilian lawmakers tried to legalize both land-based and online sports betting in the country. The law passed, but a two-year extension on it had been issued. 

In May 2022, the process continued, and the Secretariat of Evaluation, Planning, Energy, and Lottery (SECAP) published some new regulations and rules related to the matter.

Jair Bolsonaro, a former president, was supposed to approve the decision by December 20 last year, but he didn’t do that before the deadline. The elections were held in 2022, and the new president, Lula, finally agreed to legalize sports betting in Brazil.