Because of delays caused by the outgoing administration of President Jair Bolsonaro, Brazil has no sports betting regulations in place as it competes at the FIFA World Cup in Qatar.
That means lost revenue to the government. For the regulations to be in effect it requires executive action. Since he lost the presidential election, Bolsonaro has delayed implementing a number of actions before he leaves office. Among them implementing sports betting regulations that are authorized by a 2018 law passed by Congress.
When the law was written it required regulations to be in place within two years. That period ends December 13. The Ministry of Economy has sent a draft proposal but it was blocked all of this year by Bolsonaro, who was courting votes from opponents of all gambling.
The regulations, as proposed, requires operators to apply to the Ministry of Economy for a five-year license. The license fee would be BRL 22.2 million. Foreign operators may operate in Brazil as long as they have a branch in the country. They will also pay taxes on profits and will be required to promote responsible gambling awareness.
Without regulations in place, foreign operators can operate without paying taxes. Udo Seckelmann, a lawyer specializing in sports and gaming, told Games Magazine Brasil: “The government had four years to regulate sports betting and has not done so until now. We all know that bookmakers exploit the Brazilian market through a legal loophole, the so-called ‘gray market’, and Brazil does not see the color of this money.”
He added, “The World Cup is the most important sporting competition in the world, the betting sector has a movement of millionaire figures. Without regulation, companies will continue exploring, but without consumer protection, without raising taxes or creating jobs.”
Instituto Brasileiro do Jogo Legal President Magno José told Games Magazine Brasil: “There is a gray area. If the regulation does not come out on December 13, the entrepreneur will ask the Ministry of Economy to operate the physical bet and, without the decree, he may end up obtaining authorization through the judicial process.”
