Legislation

Brazil – Brazil’s Ministry of Finance to fine tune wording of sports betting bill

The Ministry of Finance will make adjustments to three points of its sports betting bill, after receiving 2,644 contributions during the public consultation phase for the new initiative.

According to the Secretariat of Evaluation, Planning, Energy and Lottery (SECAP), Alexandre Manoel Angelo da Silva: “So far, we think that the proposed model has been well accepted. But the wording should be clarified in several articles. ”
“We will make internal corrections in two or three weeks,” he said.

Some experts responding to the consultation phase argued that international sites that currently accept Brazilian bets should be quarantined once new rules are in place. This would be a way of punishing offshore operators for operating illegally, since online sports betting has not been regulated up until this point. However specialists working for the Ministry gauged that the absence of quarantine would be a way to bring these companies into the newly regulated space. This will be clarified in the wording of the new law.

Meanwhile Article 30 establishes that all advertising of sports betting is banned except by those licensed operators. The wording of the text originally gave the impression that those who already advertise gambling sites in the country may be prevented from participating in the market. However the law would mean that such advertising is not allowed once the legal framework is in place.

Another point of the law which needs clarification is taxation and to make it clearer that the taxes will be on bookmaker’s income as opposed to on prizes. In addition the new draft of the decree will clarify that the player can place bets before and during the matches. Another point is the criminalisation of illegal betting sites and for those who participate in match fixing. The government project provides for prison sentences of one to five years for those who operate without a license. Those who participate in match fixing can face from two to eight years in prison.
The clarifications are necessary so that the National Congress can pass the bill smoothly.

In August, the Ministry of Economy received suggestions, both from Brazilian and foreign entities and individuals, on how to regulate sports betting. In March Alexandre Manoel Angelo da Silva said that new sports betting rules should be in place within the next two years. It is believed that that the Ministry of economy is looking at international regulatory models to understand what framework would be best suited to Brazil.