Brazil to Suspend Unlicensed Operators from October
On Sep. 17, a new ordinance announced only operators who are both already active in Brazil and have applied for a license will be allowed to continue to operate from October onwards.
Normative Ordinance No 1,475 means active operators must apply for a license by 11:59 p.m. on Sep. 30 to avoid their sites being blocked. They must also inform the Secretariat of Prizes and Bets (SPA) which brands and domains they will operate during the transition period of Oct. 1 and Dec. 31.
Eduardo Carvalhaes and Karen Coutinho, lawyers for Brazilian law firm Lefosse, say this should ease industry fears over the presence of illegal operators in Brazil’s legal betting market, which is set to go live on Jan. 1, 2025.
But while the move was celebrated by the likes of the Brazilian Institute of Responsible Gaming (IBJR), some have raised concerns over its legality. Paulo Horn, the President of the Order of Attorneys of Brazil in Rio de Janeiro, claims the ordinance is unconstitutional and believes the Ministry of Finance should reconsider.
Concerns in Colombia Over Proposed Gambling VAT
The Colombian Association of Gaming Operators (Asojuegos) believes a new value-added tax (VAT) on online gambling could lead to a rise in black market activity.
Earlier this month, reports claimed the Colombian government was planning to assess the introduction of a new 19 percent VAT on online operators, with the country’s President Gustavo Petro set to review the move as part of his upcoming budget.
Currently in Colombia, operators with a return-to-player (RTP) rate of 83 percent of stakes are taxed 15 percent of gross gaming revenue (GGR). Meanwhile, operators with an RTP of over 83 percent pay 17 percent of GGR.
Asojuegos has warned the additional VAT could have “devastating consequences” on the Colombian online gambling sector, saying: “If VAT is applied, the return to the player would be reduced from 93 percent to 71-75 percent, which would cause players to migrate to illegal or international platforms that are not subject to these tax burdens, which would decrease the sector’s income.”
Credit Card Ban Could be Brought Forward in Brazil
The President of the Brazilian Federation of Banks (Febraban) Isaac Sidney is calling for the ban on the use of credit cards for betting to be brought forward.
Normative Ordinance No 615, published in April, banned using credit, crypto, cash, payment slips or cheques for betting, with only electronic money transfers permitted.
However, that ban is only set to come in from the legal market launch date in January. Sidney says it’s vital it comes in sooner to protect players.
“We are very concerned about how much this could compromise family income and increase default, even increasing the cost of credit,” Sidney told journalists in quotes shared with Folha.
Playtech Seemingly Ends Caliplay Dispute with New Deal
Playtech has signaled the end to its dispute with Mexico-facing operator Caliente over their Caliplay joint venture after a new deal was agreed between the companies.
The two companies have been involved in a long-running disagreement over unpaid fees, with uncertainties over Caliplay having an option to redeem additional services fees from its Playtech deal.
Playtech believed this option had expired, while Caliplay insisted it was still valid. It appeared neither company would back down, though this week Playtech announced a revised strategic agreement with Caliente.
All parties have agreed to a standstill of legal proceedings, while Caliplay has resumed payment of the disputed software and services fees to Playtech, which will now hold a 30.8 percent equity interest in Caliplay’s new U.S.-incorporated holding company Caliente Interactive.
ANJL Letter Refutes Claims Over Betting’s Impact on Consumer Behavior in Brazil
The National Association of Games and Lotteries (ANJL) in Brazil released an open letter on Sep. 16, with operators hitting back at claims that bettors are irresponsibly funding their habits.
A controversial study from earlier this year claimed 23 percent of those who commit part of their salary to betting each month had stopped buying clothes, while 11 percent reduced spending on healthcare and medication.
The ANJL responded to the survey, pointing to data from the Brazilian Institute of Geography and Statistics (IBGE) that instead showed household consumption expenditure in the country had increased 1.3 percent in Q2 from the previous quarter, with a 4.9 percent year-on-year increase.
The ANJL said: “Claims that the betting industry is responsible for a supposed reduction in consumption by Brazilians or an increase in the level of debt are unfounded.”
