Brazil is on the cusp of introducing a regulated market for sports betting and online casinos, aiming for a launch by July, with indications that the first licenses will be announced as early as March. This development comes after a significant endorsement from Brazil’s President, Luiz Inácio Lula da Silva, who, in December, approved a comprehensive regulatory scheme for sports betting and igaming. This move was bolstered by the Chamber of Deputies’ decision to pass the relevant legislation, marking a significant step towards regulating this sector.
The journey towards regulation has been extensive, originating with a bill passed by the Senate in 2018. However, the enactment of this legislation stalled under the administration of former President Jair Bolsonaro, who concluded his term without signing the bill into law. The legislative efforts saw igaming reintroduced into the bill after it was previously excluded, setting the stage for the current developments.
Prominent gambling entities such as Bet365, Betfair, and Betsson, which have been operational in Brazil, face new challenges under the incoming legislation. The new law prohibits international operators from acquiring licenses, introducing uncertainty about their ability to continue operations through partnerships with domestic companies. Despite these hurdles, the forthcoming regulatory framework offers a window for both local and international operators to align with the new requirements.
During a presentation at ICE London, José Francisco Manssur, a special advisor to the Brazilian Ministry of Finance, shed light on the licensing timeline. The initial batch of operators is expected to receive authorization in March, with subsequent phases to follow. In a proactive move last October, the Ministry of Finance invited expressions of interest for fixed-odds betting licenses, attracting attention from 134 operators. These licenses, which are valid for up to five years, come with a significant operational fee, highlighting the government’s commitment to establishing a well-regulated gambling ecosystem.
This regulatory milestone is anticipated to reshape Brazil’s gambling landscape, providing a structured and legal framework for operators and bettors alike. As the country prepares for this new chapter, stakeholders are keenly watching the unfolding developments, ready to adapt to the evolving market dynamics.
