After years of anticipation, Brazil’s fixed-odd sports betting market is finally being regulated. On December 30, 2023, the long-awaited presidential sanction brought this to fruition. As a result, the Ministry of Finance is now taking steps to establish the National Gambling and Betting Secretariat by the end of this month.
This secretariat will play a pivotal role in overseeing the sector, authorizing operations, monitoring taxes and preventing money laundering.
To effectively regulate the sports betting industry, the Ministry of Finance has obtained the release of 38 positions for the newly formed secretariat. The team will be a mix of relocated public servants and new hires, with the possibility of including private sector professionals in positions of trust. The appointment of the secretariat’s leader will be made official through a decree, with lawyer José Francisco Manssur being considered for this role.
In addition to the National Gambling and Betting Secretariat, the Ministry of Sports is expected to hire 12 employees to combat match manipulation and manage the transfer of revenue to sporting entities. With a total of 50 servers divided between the two ministries, it is evident that this project carries significant scope and importance.
The establishment of the Gambling Secretariat will also be responsible for supervising Caixa lotteries and the resumption of Lotex. This expansion of responsibilities goes beyond sports betting, underscoring the need for quick implementation. Currently, the team handling these tasks consists of approximately 15 employees, highlighting the overload they face.
To ensure the integrity of the betting and lottery sectors, the government is considering the creation of an integrity agency. This agency would monitor these activities and combat gambling addiction, working in collaboration with the Ministries of Finance, Sports, and Health. The Ministry of Health, responsible for mental disorders, would contribute its expertise without the need to establish a new body.
The Treasury, which manages the operational monitoring system, is currently in the testing phase. This system will play a crucial role in overseeing the betting market and ensuring compliance. Prior to the launch of the system, representatives from 134 companies expressed their interest in working in this sector, indicating the high level of anticipation and potential growth.
The Treasury aims to increase revenue by implementing taxes on online betting. With the inclusion of online gaming, which represents 65 percent of revenue, the department expects to generate billions.
The law that was sanctioned at the end of December brings much-needed clarity to the sports betting market in Brazil. The government, after facing pressure and reports of fraud, took action to regulate the industry. The establishment of the National Gambling and Betting Secretariat, along with the projected revenue, paves the way for a new phase in the Brazilian sports betting market. The government’s measures not only aim to regulate the sector but also to ensure integrity and safety in this expanding industry.
