Full Betting Licenses in Brazil Now Total 43
A further eight companies have received full authorization to offer online betting in Brazil, taking the total number of fully licensed operators to 43.
An ordinance in the Official Gazette of the Union on Feb. 18 announced the latest approvals, adding 18 more brands and bringing the total to 191 fully licensed brands.
Among the notable brands receiving a full betting license on Feb. 18 was EstrelaBet, while F12, one of the first 10 applicants for authorization, has also secured its definitive license.
Betsson remains absent from the list of authorized companies, with a spokesperson previously informing iGB that it has until the end of February to submit the required technical certifications to convert its provisional license into full authorization.
Gambling VAT in Colombia to Remain Until December
Colombia’s value-added tax (VAT) on gambling will remain in effect until December and will apply to player deposits, according to a government notice dated Feb. 14.
Following extensive speculation about the scope and duration of the VAT measure, the Colombian government issued an updated decree (Decree No 0175) Feb. 14, temporarily removing the VAT exemption on online gambling. This change pertains to Article 420 of the country’s tax code.
The tax rate is fixed at 19 percent of player deposits and will take effect on Feb. 21. It will apply to payments made via cash, bank transfers or crypto, even though cryptocurrency is not recognized as a valid deposit currency in Colombia.
Decree No 0175 states that the tax measures have been implemented to fund expenses related to ongoing unrest in Colombia’s Catatumbo region, where clashes between rebel groups have displaced an estimated 30,000 people.
New VAT in Colombia Could Drive Operators Away, Gambling Trade Body Warns
The Colombian Federation of Gambling Entrepreneurs (Fecoljuegos) has criticized the government’s decision to impose the 19 percent VAT on betting, warning it could result in operators exiting the market.
Fecoljuegos has called upon the Colombian government to reconsider the tax as it “puts the stability of the sector at risk.”
A key point of contention is operators being given just five days to adapt to the tax, with betting companies needing to first modify their gaming systems to allow them to collect the tax, with those systems then needing to be recertified. Companies that fail to recertify their systems risk breaching Colombia’s gambling laws.
This is a major concern for Fecoljuegos, which worries the 16 operators licensed for online gambling in Colombia may partially suspend operations or exit the market entirely.
Twists and Turns Continue in Loterj/Federal Government Battle
The legal battle in Brazil between the Rio de Janeiro State Lottery (Loterj) and the federal government has taken another turn, with the Supreme Federal Court (STF) trial on whether to make the ban on Loterj’s nationwide activities permanent now resuming after a brief suspension.
The ongoing dispute over whether Loterj can operate across Brazil appears to be leaning in favor of the federal government. In early January, STF Minister André Mendonça issued a preliminary ruling banning the state regulator’s licensees from operating outside Rio de Janeiro’s borders, while also mandating geolocation tracking.
The virtual trial in the STF’s plenary to decide whether to make those measures permanent began Feb. 14, but Minister Dias Toffoli requested a review on Feb. 18, suspending the trial.
However, the trial has now resumed, with Minister Flávio Dino voting to make the measures permanent, meaning it’s now four votes to zero for Mendonça’s injunction to be upheld.
ANJL Concerned Over Bank Warnings Against Gambling
The National Association of Games and Lotteries (ANJL) has expressed its concerns over banks in Brazil warning customers not to place bets.
The ANJL claims in some cases, banks have even blocked users’ accounts when they have tried to place bets, with the ANJL saying this displays “unequal treatment of a legitimate sector of the country’s economy.”
The ANJL takes issue with banks such as Bradesco and Nubank only targeting legal sites with these messages, with players not receiving those notifications when betting with black market operators.
“In this sense, the warnings issued by banks should inform that bets should only be made with legal companies and refer the bettor to the website of the Ministry of Finance to consult the licensed betting companies,” the ANJL explains.
