Phased rollout of regulated gambling in Brazil

Lea Hogg April 13, 2024

SiGMA news

Phased rollout of regulated gambling in Brazil

Brazil’s gambling industry is on the verge of a significant transformation, with the Ministry of Finance outlining a timeline for the ongoing regulatory process. The ministry recently issued Ordinance SPA/MF nº 561, which delineates the regulatory framework for gaming in Brazil.

The phased implementation of the regulatory agenda, which includes sports betting and iGaming, will commence this month and continue until July. The Prizes and Betting Secretariat (SPA), a newly formed ministerial body, will oversee this sector. The SPA is tasked with preparing the groundwork for sports betting, which will be introduced in four planned stages.

This announcement marks the latest milestone in Brazil’s prolonged journey to regulate sports betting and iGaming. After numerous twists and turns, sports betting and iGaming were finally legalized by President Lula in January 2024.

However, the regulations have raised concerns among some observers, particularly regarding the 15 percent tax on winnings. Critics argue that this could drive players towards the unregulated market.

The ministry has stated that the primary goal of this measure is to systematically structure the regulatory agenda for fixed-odds betting in the country. This represents a significant step forward in managing and supervising this sector. The ordinance provides legal certainty, ensures predictability and efficiency in the regulatory process, and lays the foundation for a stable and reliable betting environment in Brazil.

May rollout for second phase

The first phase of the regulatory roll-out is currently underway. The ministry will issue regulations this month regarding the payment, technical, and security requirements for operators. Conditions for operators seeking a licence will also be published during this phase. iGaming will be addressed separately, with initial rules for live gaming studios, testing requirements, and online games issued in February.

The second phase, set to begin in May, will involve the publication of ordinances on money laundering and other crimes. The SPA will also establish the legal framework for operator and player rights and issue an ordinance outlining the certification requirements for online games and live dealer studios.

In June, the SPA will initiate the third phase, during which the ministry will issue three additional ordinances. These will address the technical and security requirements for iGaming, rules for supervising operators, and regulations for penalizing operators who violate the law.

The fourth and final phase will commence in July. The SPA will then publish the ordinance on responsible gaming and guidelines for monitoring and preventing gambling-related harm. The final ordinance of the program will detail the process for allocating funds to the good causes specified in the legislation. This phased approach to regulation represents a significant step forward for the Brazilian gambling industry.