Brazil’s Ministry of Economy to issue preliminary sports betting rules

Jair Bolsonaro's administration seeks to have a preliminary draft of the sports betting enforcement rules by the end of the year.

During August, Brazil’s Ministry of Economy received almost 1.200 suggestions both from Brazilian and foreign entities as well as citizens under a public consultation opened July 29, to gather ideas on the so-called Apostas de Quota Fixa (fixed-odd sports wagers).

Economy officials were surprised by the interest generated by the regulation of sports betting, as similar public consultations received less than 70 suggestions in the past.

The economic team, therefore, decided to submit a draft document with implementation rules to the Executive branch and the Congress, no later than December.

Pursuant to legislation enacted December 2018, the Ministry of Economy has time until late 2022 to issue specific rules for the statutory law’s implementation.

It is worth noting that August 31 was the deadline to submit suggestions on the first public consultation promoted by the Secretary of Evaluation of Public Policies, Planning, Energy and Lottery (SECAP), a Ministry of Economy agency. The sports betting community was able to contribute with suggestions by submitting an application to provide answers to pre-determined questions on the regulation of this gambling vertical. 

Law 13.756 was enacted on December 12, 2018 to legalize sports betting in Brazil on a federal level. This piece of legislation allows for the operation of sports wagering at retail locations as well as online.

In accordance with unofficial data, the online sports betting market in Brazil generates around BRL 4 billion (USD 957 million).

According to SECAP’s Waldir Marques, a regulated environment will not only legalize online sports betting services which are currently operating in the country but also generate a major economic resource "The regulation of sports betting is aimed at producing revenues and creating jobs. That is the Ministry’s goal. The market already exists but it is not generating resources for the country," Marques said.

The economic team is still analyzing international regulatory frameworks in an attempt to understand which would be the most suitable model for Brazil. "We are trying to learn from the best jurisdictions. We want to focus on responsible gaming measures and under-age protection, as well as policies against money-laundering and match-fixing," Marques added.