Brazil: Government introduces detailed rules for online gambling and sports betting
The Brazilian Ministry of Finance has presented the new regulations for online gambling and sports betting. The decree outlines which games will be allowed in the future and what conditions they must meet. The first international gambling providers have already applied for a Brazilian license.
Online Gambling with a Random Character
The Brazilian Ministry of Finance published a decree with rules for online gambling and sports betting on July 31. This decree states that all types of online gambling must have a random character.
Numbers, symbols, figures, and objects must be produced by a random number generator. Players must also be provided with a paytable before the game starts, from which all winning and combination possibilities can be seen.
In addition, all important key data of the game or bet must be visible. Those who place a bet must have insight into the currently valid odds and the multiplication factors.
Which Games Will Be Allowed in Brazil?
The rules for online gambling were published about three weeks before August 20: This day is the deadline for submitting license applications. The newly presented agenda not only sets the regulations for the games but also defines for the first time which types of gambling will be allowed.
The new decree states that online slots and card games such as blackjack and poker are to be legalized. Roulette may also be legally offered in Brazil in the future.
For all offered games, the above-mentioned points should apply: They must be random and the chances of winning must be visible in advance. Each game must offer players an RTP (Return To Player) of 85%. The advertised maximum prize must be paid out to at least one in 100 million players.
First Applications for a Brazilian License Have Been Received
About three weeks before the end of the deadline for submitting licenses, a total of five applications for the issuance of a Brazilian license have been received. These include the following providers:
- Betano
- Sportingbet
- Superbet
- Rei do Pitaco
- Big Brazil
The applications were all submitted to the relevant authorities in July - only the Austrian provider Betano had already submitted all the necessary documents in May. The Ministry of Finance is said to be treating the applications from Sportingbet and Big Brazil preferentially. The reason for this has not yet been announced.
The Ministry of Finance guarantees that all providers who submit their applications by August 20 will receive their license by January 1, 2025. From this date, online gambling and sports betting will be legalized in Brazil, and providers will be able to publish their games directly. Those who do not receive a license by this date but still offer gambling will face severe penalties.
The licenses issued will have a validity of 5 years. The costs are estimated at 30 million BRL (approximately 5.4 million euros).
A few weeks ago, the Ministry of Finance had already published a decree with conditions for the granting of gambling licenses. In this, it was stipulated that all providers must comply with international guidelines for the prevention and combating of money laundering and the prevention of terrorist financing.
Despite announcing the rules for online gambling, the Brazilian government is lagging behind its schedule. Initially, it was planned to complete preparations for the legalization of online gambling and sports betting by the end of July this year, with expectations that the sectors could be legalized in the second half of the year.
However, these expectations appear to be incorrect. So far, no rules have been set for the technical standards for gambling. Regulations for monitoring and specific details on administrative sanctions are also still missing. Therefore, phases 3 and 4 of the schedule seem not to be completed yet.
It is currently likely that the legalization will be postponed to January 1, 2025. It remains to be seen whether the Brazilian government will be able to meet this new deadline.
The published decree by the Brazilian Ministry of Finance specifies that all forms of online gambling must include a random element, as stated in the conditions for granting gambling licenses.
With the approaching August 20 deadline, five applicants, including Betano, Sportingbet, Superbet, Rei do Pitaco, and Big Brazil, have submitted their applications for a Brazilian gambling license.
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