Brazil on verge of sportsbook regulation

Brazil looks set to introduce new legislation for fixed-odds sports betting after Congress passed a law aimed at regulating the country’s large unlicensed market, eGaming Review has learned.

The new law is expected to be sanctioned by President Dilma Rousseff in the coming weeks and although the exact form of the sports betting offering is still unclear, operators will be able to obtain a licence in order to offer fixed-odds sports betting online.

Previously state and federal lotteries and some limited horse racing were the only forms of legalised gambling in Brazil, but a large offshore grey market has grown in recent years, with an estimated eight million people gambling online in the country.

Luiz Felipe Maia, partner at law firm Oliveira Ramos, Maia e Advogados Associados in São Paulo, described the news as a “game changer” and said he expected major foreign operators “to make a move” once the market had opened.

The licensing process, which could be underway before the end of the year, will see Caixa Econômica Federal, the public bank responsible for federal lotteries, horse racing entities and private operators compete for licences.

And although operators will be subject to ordinary Brazilian corporate levies and services taxes, Maia said the size of the market and a government pledge to crackdown on offshore operators should make the country appealing.

While there are currently no plans to ISP or payment block offshore operators, Brazil’s government will subject players and affiliates to fines ranging from £400 to £40,000 for using unlicensed sites.

“This is a strong demonstration of the Brazilian government’s new policy to start acting against offshore betting,” Maia said.