In Brazil, the implementation of the online betting market is underway and regulatory gaps are being questioned. A series of ordinances should be released in the coming weeks.
“Significant concerns”
Operators have until August 20 to apply for an iGaming license and be granted the right to operate from 2025. However, there are still some unanswered questions. The state had announced that 11 ordinances would be released by the end of July to address the gaps in the current legislation. The government has now fallen behind schedule.
Operators are becoming increasingly anxious due to the uncertainty surrounding their ability to fully comply with regulations before applying for licenses. Despite the significant buzz around Brazil’s iGaming market launch, only three operators have submitted applications so far. Many others are holding off, awaiting clearer guidelines to determine whether pursuing a license is worthwhile.
“It is challenging for foreign companies to apply for licenses without knowing all the obligations they will need to comply with in advance,” explained Fernanda Meirelles, partner at law firm FAS Advogados in São Paulo, to Vixio GamblingCompliance, adding that it was causing “significant concerns” to operators.
Matters awaiting clarification
The upcoming ordinances are expected to clarify several key issues. These include the application of the Brazilian Consumer Protection Code to iGaming, as well as guidelines for inspection and monitoring, enforcement protocols, and responsible gaming practices. Additionally, the ordinances will address the regulation of bonuses and advertisements, particularly those involving influencers, in the coming weeks.
One of the most awaited ordinances is about fixed odds for online casino games. Even though the future of certain jackpot-based and crash games is still uncertain in Brazil, some seem to think that they will be permitted as long as they provide players with clear information about the amount they may win before placing bets.
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