Brazil’s sports betting regulation moving at glacial pace

The task of regulating sports betting across Brazil looks no closer with yet another deadline for the introduction of a provisional measure being capitulated upon.

A further congressional recess means that further delays are undoubtedly yet to be endured.

The proposed provisional measure

The Ministry of Finance had initially lobbied for the specific introduction of a provisional measure that would see sports wagering legalised in the South American nation, while also allowing for the provision of sports betting licences.

The measure also seeks to address the taxation of this new legal market along with establishing administrative penalties, with an accompanying bill covering licencing, integrity and even match-fixing to follow.

This provision was originally aimed at regulating the sports betting law passed back in December of 2018 by now-former President Michel Temer.

Implementation of any kind has been incredibly scarce since then with the current government in Brazil already missing a statutory deadline to act on the newly passed law within 4 years of its approval.

Stagnation and frustration

Perhaps the most pressing obstruction to such legislative action being taken towards this measure is the pending parliamentary investigation being undertaken into a high-profile betting integrity scandal, which is not set for conclusion until September.

Arthur Lira

Subsequent to the election of President Luiz Inácio Lula da Silva it was hoped that the measure would follow swiftly, however, a draft proposal which was leaked in May was met with pushback from Arthur Lira.

One of Brazil’s most influentially powerful politicians, Lira made a tremendous job of stalling the measure which had already been circulated to the press. This action from Lira has since proven substantial enough to bring other obstructions into the measure’s path.

Local regulation

While this regulatory issue at the state level seems a long way from being resolved, local governments have been regulating sports betting at a comparably rapid pace.

The state of Parana is in the process of joining Rio de Janeiro as the second state to begin issuing accreditations to sports betting operators.

This is possible due to a 2020 Supreme Court ruling that granted state and municipal governments equal rights with the federal government to operate and regulate lottery games.

Additionally, this decision allows for a potential partnership with the government in the operation of lottery games and their online sales.

In lieu of this provision, Belo Horizonte has become the latest state to announce the creation of a local lottery operation.

Check out the SiGMA Asia Summit – The next step in your iGaming journey

After the successful completion of the inaugural SiGMA Americas and BiS Summit in São Paulo, Brazil, delegates can continue their journey into the iGaming industry with the upcoming SiGMA Asia Summit.

Join us in Manila this July for a PAGCOR-endorsed event that offers an immersive exploration of the Asian and Philippine gaming markets. Engage in in-depth discussions on gaming regulation, industry trends, and future prospects. Connect with key regional and global stakeholders and gain valuable insights into the industry. Don’t miss this opportunity to be a part of the SiGMA Asia Summit in Manila.